Federal Reserve Bulletin, 2003-02

Volume 89 • Number 2 • February 2003 Federal Reserve BULLETIN Board of Governors of the Federal Reserve System, Washington, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PUBLICATIONS COMMITTEE Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Stephen R. Malphrus • J. Virgil Mattingly, Jr. • Vincent R. Reinhart • Dolores S. Smith • Richard Spillenkothen • David J. Stockton The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Publications Department under the direction of Lucretia M. Boyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 47 AN OVERVIEW OF CONSUMER DATA AND firms that perform audit and attestation services CREDIT REPORTING for insured depository institutions. For some time, the Board of Governors of the Interagency guidance on issues related to a Federal Reserve System has sought to obtain lapse in the statutory authority to issue flood more detailed and timely information on the debt insurance policies. status, loan payment behavior, and overall credit Release of minutes of discount rate meetings. quality of U.S. consumers. For decades, information of this type has been gathered by credit Publication of the November 2002 update to the reporting companies primarily to assist creditors Commercial Bank Examination Manual. in evaluating the credit quality of current and Enforcement action. prospective customers. To evaluate the potential usefulness of these data, the Federal Reserve Changes in Board staff. Board engaged one of the three national consumer reporting companies to supply the credit 81 LEGAL DEVELOPMENTS records, without personal identifying information, of a nationally representative sample of Various bank holding company, bank service individuals. corporation, and bank merger orders; and pend- This article describes the way the credit report- ing cases. ing companies compile and report their data and gives background on the regulatory structure A1 FINANCIAL AND BUSINESS STATISTICS governing these activities. This description is fol- These tables reflect data available as of lowed by a detailed look at the information col- December 27, 2002. lected in credit reports. Key aspects of the data that may be incomplete, duplicative, or ambiguous as they apply to credit evaluation are high- A3 GUIDE TO TABLES lighted in the analysis. The article concludes with A4 Domestic Financial Statistics a discussion of steps that might be taken to A42 Domestic Nonfinancial Statistics address some of the issues identified. A44 International Statistics 74 ANNOUNCEMENTS A57 GUIDE TO SPECIAL TABLES AND Rates set under primary and secondary credit STATISTICAL RELEASES programs. Annual notice of the asset-size exemption thresh- A70 INDEX TO STATISTICAL TABLES old for depository institutions under Regulation C. A72 BOARD OF GOVERNORS AND STAFF Preliminary figures on income of the Federal A74 FEDERAL OPEN MARKET COMMITTEE AND Reserve Banks. Appointments of new members and designation STAFF; ADVISORY COUNCILS of the chair and vice chair of the Consumer Advisory Council. A76 FEDERAL RESERVE BOARD PUBLICATIONS Rules proposed for disciplinary actions by the federal bank and thrift regulatory agencies against A78 MAPS OF THE FEDERAL RESERVE SYSTEM independent public accountants and accounting A80 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting Robert B. Avery, Paul S. Calem, and Glenn B. Can- to profile the nature and content of information conner, of the Board's Division of Research and Statis- tained in credit reporting company records. tics, and Raphael W. Bostic, of the University of Assessing the usefulness of these data as a poten- Southern California, prepared this article. tial source of information for the Board involves several tasks. This article is an initial step in the For some time, the Board of Governors of the Federal process; it examines the scope and content of the Reserve System has sought to obtain more detailed data, using a framework based on key aspects of and timely information on the debt status, loan credit evaluation. This approach is a natural way to payment behavior, and overall credit quality of begin the assessment process because the credit U.S. consumers. Such information could facilitate reporting companies' primary purpose for collecting the Board's analysis of macroeconomic conditions, these data is to facilitate credit evaluation. Future improve its understanding of the way credit is pro- steps will focus on other aspects of this evaluation, vided to consumers, and enhance the System's super- including comparing measures of aggregate borrowvision of banking activities. For decades, information ing activity and credit quality derived from the credit of this type has been gathered by credit reporting reporting data with measures from other sources. companies, primarily to assist creditors in evaluating The article begins with a brief description of the the credit quality of current and prospective custom- way the credit reporting companies compile and ers. The information gathered by credit reporting report their data and gives background on the regulacompanies is vast and seeks to cover virtually all U.S. tory structure governing these activities. This descripconsumer borrowing.1 To the extent that this informa- tion is followed by a detailed look at the information tion is complete, comprehensive, and accurate, it collected in credit reports. The discussion of these represents a potential new source of statistical data data is divided along the lines of the major comfor the Federal Reserve on consumer credit markets ponents of consumer credit report data—credit and behavior. accounts; public records relating to the person's debt To evaluate the potential usefulness of these data, or payment obligations (bankruptcy filings, liens, the Federal Reserve Board engaged one of the three judgments in civil actions, and so on); collection national credit reporting companies to supply the agency accounts; and inquiries regarding credit starecords of a nationally representative sample of tus. The distribution patterns of items such as account individuals.2 The data provide a unique opportunity balances, credit utilization, and measures of payment performance by type of account and creditor are broadly described. Key aspects of the data that may be incomplete, duplicative, or ambiguous as they 1. The Fair Credit Reporting Act generally refers to a company that regularly assembles or evaluates consumer credit information for the apply to credit evaluation are highlighted in the purpose of furnishing consumer reports as a "consumer reporting analysis. The article concludes with a discussion of agency." Such companies are also called "credit bureaus" or, as in steps that might be taken to address some of the this article, "credit reporting companies." Three national credit reporting companies—Equifax, Experian, and Trans Union Corporation— issues identified. jointly have a dominant presence in the market for credit-related information on consumers. Each national credit reporting company seeks to maintain records for each individual, although, for a variety of reasons, all companies may not have the same information for a given individual. For more information on industry structure, see Robert M. Hunt, "What's in the File? The Economics and Law of entities that reported information to the credit reporting company were Consumer Credit Bureaus," Business Review, Federal Reserve Bank also omitted. An index variable, unique to this dataset, allowed of Philadelphia (second quarter, 2002), pp. 17-24. records of the same individual to be linked. A similar index variable 2. Identifying information, such as name, address, and social secu- allowed records of the same creditor (or other reporter) to be linked. rity number, was omitted from the data obtained by the Federal Neither of these variables could be used to link to any publicly Reserve. The identities of the creditors, collection agencies, and other available information. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • February 2003 COMPOSITION AND SOURCES OF CREDIT • information reported by collection agencies on REPORTING COMPANY RECORDS actions associated with credit accounts and noncredit-related bills, referred to here as collection Credit reporting companies gather information on agency accounts an individual's experiences with credit, leases, non- • identities of individuals or companies that credit-related bills, money-related public records, and request information from an individual's credit inquiries and compile it in a credit record. A credit record, the date of the inquiry, and an indication of record generally includes five types of information: whether the inquiry was by the consumer, for the review of an existing account, or to help the inquirer • identifying information such as the name of the make a decision on a potential future account or individual, current and previous residential addresses, relationship. and social security number • detailed information reported by creditors (and The consumer credit report, the basic product that some other entities, such as a medical establishment) the credit reporting companies provide to those seekon each current and past loan, lease, or non-credit- ing information about the credit history of an indirelated bill, each of which is referred to here as a vidual, is the organized presentation of the individucredit account3 al's credit record at the credit reporting company.4 • information derived from money-related public Industry sources report that credit reporting comparecords, such as records of bankruptcy, foreclosure, nies issue approximately 2 million consumer credit tax liens (local, state, or federal), garnishments, and other civil judgments, referred to here as public 4. Credit reporting companies maintain credit records of individurecords als, not couples or other family units. Therefore, an individual's credit report is separate and distinct from his or her spouse's report. If individuals are jointly responsible for payment on a loan, such as a 3. Non-credit-related bills include items such as utility and medical mortgage, a record of that credit account will appear in each individubills. al's file, along with an indicator that it is a joint account. A Summary of Consumer Rights under the Fair Credit Reporting Act The federal Fair Credit Reporting Act (FCRA) seeks to and identify each person who has requested it recently. promote accuracy, fairness, and privacy of an individual's There is no charge for the report if an adverse action has "consumer report" maintained by a "consumer reporting been taken against the consumer because of information agency "(or credit reporting company).1 The FCRA pro- in a consumer report supplied by the reporting agency and vides the following consumer rights and protections: the consumer requests the report within sixty days of receiving notice of the adverse action from the person • The right to be told if information in a consumer taking the adverse action. report has been used to take adverse action against • The right to dispute inaccurate or incomplete informaa consumer. Any person who uses information from a tion with the consumer reporting agency. If a consumer consumer report obtained from a consumer reporting notifies a reporting agency that his or her file contains agency to take adverse action against a consumer—such inaccurate or incomplete information, the agency must as denying an application for credit, insurance, or investigate the items (generally within thirty days) by employment—must tell the consumer the name, address, presenting to the furnisher or source of the information all and phone number of the reporting agency that provided relevant evidence submitted by the consumer, unless the the consumer report, inform the consumer of the right to agency determines that the dispute is frivolous. The furobtain a free copy of his or her consumer report within nisher or source must review the evidence, investigate the sixty days of receiving the notice, and notify the con- disputed information, and report its findings to the reportsumer of the right to dispute with the reporting agency the ing agency. The agency must provide the consumer with a completeness or accuracy of the consumer report. written notice of the results of the investigation, a copy of • The right to see the contents of a consumer report. the consumer report as revised based on the results of the Upon a consumer's request, a consumer reporting agency investigation, notice of the procedures used in the investimust provide the consumer with all information in his or gation (including the furnishers contacted), notice of the her file at the time of the request, except for credit scores, consumer's right to add a statement to the file disputing the accuracy or completeness of the information, and notice of the consumer's right to request that the reporting agency notify certain recent recipients of consumer 1. For the complete text of the FCRA, see 15 U.S.C. §§ 1681-1681u, on reports of the deletion of the disputed information. the Federal Trade Commission's web site (http://www.ftc.gov). 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An Overview of Consumer Data and Credit Reporting 49 reports each day.5 Access to the information and The national credit reporting companies attempt to maintenance of each credit record is governed by collect comprehensive information on all lending to conditions spelled out in the Fair Credit Reporting individuals in the United States, and the information Act (FCRA) (see box "A Summary of Consumer each maintains is vast.6 Each of the three national Rights under the Fair Credit Reporting Act"). credit reporting companies has records on perhaps as Credit reporting companies gather the informa- many as 1.5 billion credit accounts held by approxition that is in a credit record primarily from credi- mately 190 million individuals. Credit reporting comtors, government entities, collection agencies, and panies receive information from creditors and others third-party intermediaries (see box "Sources of generally every month, and they update their credit Credit Reporting Company Data"). Reporting enti- records normally within one to seven days of receivties submit information to credit reporting companies ing new information. According to industry sources, on a purely voluntary basis; no state or federal law each of the three national credit reporting companies requires creditors or others to report data to the receives more than 2 billion items of information companies. The FCRA prohibits a reporting insti- each month. tution from furnishing any information to a credit Credit reporting companies use various techniques reporting company if the institution knows or con- to process the high volume of information they sciously avoids knowing that the information is inac- receive. When a credit reporting company receives curate, and it requires institutions to participate in data from a creditor, government agency, or thirdthe process of correcting errors that are identified by party provider, it first assesses its accuracy. If the data consumers. are found to contain errors, they are returned to the 5. See Consumer Data Industry Association (formerly, the Associ- 6. See "About CDIA" on the web site of the Consumer Data ated Credit Bureaus), Press Release, March 12, 1998. Industry Association, www.cdiaoline.org. A Summary of Consumer Rights under the Fair Credit Reporting Act—Continued • The right to have inaccurate information corrected or — Information about a lawsuit, an unpaid judgment deleted. A consumer reporting agency must remove or against a consumer, or record of arrest can be reported correct inaccurate, incomplete, or unverified information for seven years or until the statute of limitations runs from its files, generally within thirty days after a dispute out, whichever is longer. is filed. However, the reporting agency is not required to • Limits for access to a consumer report. A consumer remove accurate data from a consumer's file unless it is reporting agency may furnish a consumer report only to outdated information that is required to be excluded from a person with a permissible purpose recognized by the consumer reports. FCRA—usually to consider an application for credit, • The right to dispute inaccurate items with the fur- insurance, employment, housing rental, depository nisher or source of the information. If a consumer tells account, or other legitimate business need, or in accora furnisher of information, such as a creditor who reports dance with the written instructions of the consumer. to a consumer reporting agency, that specific information • The requirement for consumer consent to furnish is inaccurate or incomplete, the furnisher may not then reports to employers or to furnish reports containing report the information to a reporting agency without medical information. A consumer reporting agency may including a notice of the dispute. not furnish a consumer report generally to a consumer's • The right to have outdated information excluded from employer or prospective employer, or a consumer report a consumer report. In most cases, a consumer report- containing medical information about the consumer in ing agency may not report negative information that is connection with a credit or insurance transaction, without more than seven years old. However, there are certain the consumer's written consent. exceptions: • The right to choose to exclude a consumer's name — Information about criminal convictions may be from consumer reporting agency lists for unsolicited reported without any time limitation. firm offers of credit and insurance. Creditors and insur- — Bankruptcy information may be reported for ten years. ers may use reporting agency file information as the basis — Information reported in response to an application for for sending unsolicited firm offers of credit or insurance. a job with an annual salary of more than $75,000 has Such offers must include a toll-free phone number or no time limit. address established by the agency from whom the creditor — Information reported because of an application for or insurer obtained the information and whom the conmore than $150,000 worth of credit or life insurance sumer may call or write to have his or her name and has no time limit. address removed from future lists. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • February 2003 companies and some government agencies do not Sources of Credit Reporting Company Data report to the credit reporting companies. Loans extended by individuals, employers, insurance com- Credit reporting companies receive the information that panies, and foreign entities typically are not reported. is included in credit records from a wide variety of Second, complete information is not always prosources. They receive information on individual credit vided for each account reported. Sometimes creditors accounts, which makes up the bulk of the data that they do not report or update information on the credit maintain, from virtually all commercial banks, savings accounts of borrowers who consistently make their associations, and credit unions; from most finance comrequired payments as scheduled. Credit limits estabpanies; and from major retailers and many other busilished on revolving accounts are sometimes not nesses, such oil and gas companies. Some utility and reported. Also, creditors may not notify the credit medical companies also report on their accounts. reporting company when an account is closed or Credit reporting companies also gather information undergoes other material changes. from many agencies specializing in collections. These collection agencies may be acting on behalf of a claim- The information reported on credit accounts ant, or they may have purchased the rights to an account reflects each account's payment status and outstandthemselves. Collection agencies report information on ing balance shortly before it is forwarded to the credit accounts in collection, including many non-credit-related reporting company. Thus, the report is sensitive to bills, such as those associated with medical treatment or the date on which the information is forwarded. For services from communication or power companies, as example, a credit account reported to the credit well as some credit accounts. reporting companies on the day after a payment is Collection agency reporting does not represent a full made and posted to the account will show a smaller accounting of credit accounts that have gone to collecbalance than one reported to the companies on the tion. Many creditors do their own collections rather than day before the payment. using collection agencies. If these creditors report to the credit reporting companies, such collections will appear Although credit reporting companies endeavor to as updates to credit account files. However, if the creditor maintain high-quality data, the degree to which condoes not report to the credit reporting companies, then sumer credit reports are accurate, complete, or consisthese collection actions will not appear in the credit files. tent across companies is in dispute. A recent study, Credit reporting companies also gather information on for example, found evidence of inconsistencies in the public records, obtaining the information from the court information included in individual credit reports system, government entities, or third parties. Some of across the national credit reporting companies.7 An these sources have computerized, comprehensive records; earlier investigation by a consumer organization sugothers keep only paper records that require laborgests that as many as one-third of all consumer credit intensive transcribing and recording. The former are reports may contain errors that could result in the easily obtained by credit reporting companies whereas denial of access to credit.8 A study by Arthur Anderthe latter are not. Finally, information on inquiries is sen & Company argues, however, that such errors recorded by the credit reporting companies as the inquiries are made. H may not have material significance regarding access to credit. The Andersen study concluded that only a small proportion of individuals were denied credit on reporting entity for resubmission with the necessary the basis of inaccurate information in their credit corrections. Otherwise, the credit reporting compareports.9 nies compile and reconfigure the newly received data Overall, research and creditor experience has conto create or update the record of an individual's credit sistently indicated that credit reporting company experiences. This reconfiguration can require a high information, despite any limitations that it may have, level of technical sophistication. For example, credit generally provides an effective measure of the relareporting companies have had to develop rules for deciding when to ignore slight variations in personal identifying information and techniques for recogniz- 7. See "Credit Score Accuracy and Implications for Consumers," report by Consumer Federation of America and the National Credit ing that data items with the same identifying informa- Reporting Association, December 17, 2002. tion, such as name, may actually be associated with 8. See "Mistakes Do Happen: Credit Report Errors Mean Consumdifferent individuals. ers Lose," March 1998, on the web site of the U.S. Public Information Research Group, www.uspirg.org/reports. Although credit reporting company data are exten- 9. See Consumer Data Industry Association, Press Release, sive, they are not complete. First, information on March 12, 1998; also see Robert M. Hunt, "The Development and Regulation of Consumer Credit Reporting in America," Federal some credit accounts held by individuals is not Reserve Bank of Philadelphia, Working Paper no. 02-21, November reported. Some small retail, mortgage, and finance 2002. 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An Overview of Consumer Data and Credit Reporting 51 tive credit risk posed by prospective borrowers.10 1. Individuals with credit reporting company records, Nonetheless, the industry and its critics alike recom- by type of information mend that consumers review their credit reports peri- Share of sample odically, especially if they are in the market for new Type of information Number (percent) credit, if they have been denied credit, or if their Sample size 248,027 100.0 creditor has changed the terms of an account on the Credit account 216,202 basis of credit reporting company information. Open and active account1 ... 198,399 No active account 12,637 Authorized user only 2 5,166 Public record 30,478 DESCRIPTION OF CREDIT REPORTING Collection agency account 74,888 COMPANY RECORDS Inquiry3 142,905 I One of the three national credit reporting companies None of the above 318 *Y I provided the Federal Reserve with the full credit MEMO records (with the exception of personal and creditor Credit account only 63,674 Public record only 42 identifying information) of a nationally represen- Collection agency account only 25,905 tative sample of individuals as of June 1999.11 Inquiry only3 55 Approximately 248,000 individuals included in the Credit account and: Public record 28,534 database of the national credit reporting company Collection agency account 46,496 were randomly selected (table l).12 The credit report- Inquiry3 138,584 ing company then provided the Board with the 1. Active accounts are those used within one year of the date the sample was drawn. entire credit record of each of these individuals, 2. Individuals who are authorized to use an account but not legally excluding any identifying information. Each con- responsible for its payment. Generally, these accounts will not be used in a credit evaluation of the authorized user. sumer credit record contained possibly more than 3. Includes only inquiries made within two years of the date the sample was 350 variables that described consumer credit usage drawn. * Less than 0.5 percent. and performance. The sample contains information on about Individuals have credit reporting company records 2.58 million credit accounts, a number that, by for a number of reasons: having a record of a credit the authors' estimate, translates into approximately account (whether open and active or not), being 1.43 billion credit accounts in the credit reporting an authorized user on a credit account, having a company's full database (table 2, memo item). The money-related public record, having a record of a authors estimate the aggregate balances owed on collection action, or having had an inquiry about their the credit accounts in the full database to have been credit circumstances. Approximately 87 percent of $6.7 trillion as of June 30, 1999. Credit accounts individuals in the sample had a record of a credit were reported by thousands of organizations, includ- account, and 92 percent of these had an open and ing more than 23,000 creditors reporting currently active account as of the date the sample was drawn (those providing data at the time the sample was (table 1). A very small share of the individuals in the drawn). sample had only a public record item or an inquiry. However, about 11 percent of the sample had a credit reporting company record only because of a collec- 10. See Robert B. Avery, Raphael W. Bostic, Paul S. Calem, and tion action. Glenn B. Canner, "Credit Risk, Credit Scoring, and the Performance of Home Mortgages," Federal Reserve Bulletin (July 1996), The following discussion highlights the contents pp. 621-48. and scope of the data in the sample. A close examina- 11. Most credit and other records contained in the credit reporting tion of the data reveals that the information is not company files of individuals are common to the three national companies, which have adopted common standards for the reporting and complete in all regards and at times contains duplicoding of information provided by creditors and others. Nonetheless, cations and ambiguities. These omissions and limitasome differences remain across companies. Some small institutions do tions may require users of the information to make not report to all three companies, and coverage of public records may not be identical. Moreover, differences can arise because of the timing assumptions about how to treat certain reported items of the receipt and processing of information at each company within a in developing a credit profile for a consumer. The typical reporting cycle. Finally, rules regarding the linkage of reports following discussion reviews the more important to a common individual and the treatment of items such as noncurrent data can vary across credit reporting companies. of these issues and quantifies their scope. Because 12. This sample consists of approximately 1 file out of every 657 the information is now somewhat dated, some of files from the reporting company; the sampling frame excludes non- the patterns presented here may not reflect current individual accounts, such as small business accounts, and records of deceased persons. circumstances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • February 2003 2. All credit accounts and balances, grouped by status and distributed by account characteristic Percent except as noted Account status Currently reported Not currently reported AAAAllllllll aaaaccccccccoooouuuunnnnttttssss:::: AAAAccccccccoooouuuunnnntttt cccchhhhaaaarrrraaaacccctttteeeerrrriiiissssttttiiiicccc hhhh ssss aaaa hhhh vvvv aaaa iiii rrrr nnnn eeee gggg Open Closed (ze D ro o r b m al a a n n t c e) (p U o n s k it n iv o e w n o r cccchhhhaaaarrrraaaacccctttteeeerrrriiiissssttttiiiicccc unknown balance) Share Share Share Share Share Share Share Share having of having of having of having of characteristic characteristic characteristic characteristic characteristic characteristic characteristic characteristic Type of credit Revolving 62.7 71.2 36.1 44.3 29.9 95.4 27.6 51.5 6.4 Check credit 1.8 1.9 35.2 1.3 30.9 2.6 27.3 1.5 6.7 Banking institution 30.5 38.0 39.6 29.1 40.2 25.1 14.9 20.8 5.3 Finance company or credit union 4.7 4.4 29.3 3.1 27.5 9.6 36.7 3.9 6.4 Retailer 23.8 24.8 33.2 10.1 17.9 53.8 41.1 23.7 7.7 Other1 1.9 2.1 28.5 1.9 34.4 1.8 13.8 7.0 23.3 Nonrevolving 4.7 4.1 27.9 4.0 36.4 4.6 18.0 10.7 17.8 Installment 26.6 19.0 22.7 43.7 69.6 .0 .0 26.3 7.7 Mortgage 6.1 5.7 29.9 7.9 55.4 .0 .0 11.5 14.7 All accounts 100.0 100.0 31.8 100.0 42.3 100.0 18.2 100.0 7.8 MEMO Percent of revolving accounts missing credit limit 34.9 32.3 49.3 .0 .0 39.2 45.8 28.6 4.8 Holder Single 78.9 80.0 32.3 74.8 40.2 85.3 19.6 81.0 8.0 Joint 21.1 20.0 30.1 25.2 50.4 14.7 12.6 19.0 7.0 Creditor Banking institution 44.7 48.2 34.3 51.4 48.6 27.2 11.0 35.3 6.1 Finance company or credit union . 19.8 14.9 24.0 26.9 57.7 10.2 9.4 22.9 9.0 Retailer 24.8 25.0 32.1 12.1 20.7 54.1 39.7 24.2 7.6 Other1 10.7 11.9 35.1 9.6 37.8 8.6 14.4 17.6 12.7 Date opened Less than 1 year 8.1 19.6 77.0 1.9 10.0 3.2 7.2 6.1 5.8 1 to 2 years 9.3 16.0 54.7 5.5 24.8 5.8 11.3 11.0 9.2 2 to 4 years 19.3 21.9 36.2 18.3 40.2 14.7 13.9 24.2 9.7 More than 4 years 63.4 42.5 21.3 74.3 49.7 76.3 21.9 58.7 7.2 Date last had balance Current 31.0 67.1 68.7 4.6 6.3 .0 .0 100.0 25.0 Less than 1 year 13.8 17.3 39.8 13.6 41.6 14.2 18.6 .0 .0 1 to 2 years 10.4 6.1 18.7 14.9 60.8 11.7 20.5 .0 .0 2 to 4 years 16.7 5.9 11.2 24.8 63.1 23.6 25.7 .0 .0 More than 4 years 28.1 3.6 4.1 42.0 63.3 50.5 32.6 .0 .0 Date last reported Less than 2 months 39.8 100.0 80.0 18.8 20.0 .0 .0 .0 .0 2 months to 1 year 15.5 .0 .0 14.8 40.3 25.9 30.3 59.1 29.5 1 to 2 years 8.9 .0 .0 12.9 61.5 12.1 24.7 15.9 13.8 2 to 4 years 13.8 .0 .0 20.6 62.9 22.4 29.4 13.7 7.7 More than 4 years 22.0 .0 .0 32.9 63.3 39.7 32.7 11.3 4.0 Payment status 2 Worst recorded Major derogatory 7.8 3.1 12.8 9.2 50.0 1.4 3.2 34.1 34.0 Minor derogatory 7.0 8.0 36.7 6.5 39.2 4.9 12.7 10.2 11.4 No derogatory 85.3 88.8 33.1 84.4 41.9 93.8 20.0 55.6 5.1 At most-recent report Balance remaining/ balance unknown Major derogatory 4.3 2.1 15.1 2.7 26.3 .0 .0 32.5 58.5 Minor derogatory 1.0 1.6 50.7 .3 12.9 .0 .0 4.8 36.4 No derogatory 25.7 63.5 78.4 1.6 2.7 * * 62.7 18.9 No balance 68.9 32.8 15.1 95.4 58.5 100.0 26.3 .0 .0 MEMO3 Number of accounts (millions) ... 1,428 454 604 259 111 Percent of dollars 100.0 71.8 1.2 .0 27.0 NOTE. Here and in subsequent tables, data are a statistically representative payment plan, repossession, charge-off, collection action, bankruptcy, foresample of a national credit reporting company's credit record data as of June 30, closure, or adverse judgment by a court. 1999; items may not sum to 100 because of rounding. 3. National estimates based on the sample. 1. Includes national oil and gas companies, travel and entertainment com- . . . Not applicable. panies, utility companies, real estate firms, government entities, and smaller * Less than 0.05 percent. retailers. SOURCE. Here and in subsequent tables, author calculations using statisti- 2. A minor derogatory status is a payment delinquency of 30 days to cally representative sample provided to the Federal Reserve Board by one of the 119 days. A major derogatory status is a delinquency of 120 days or more, a three national credit reporting companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 53 Personal Identifying Information respect to whether the credit relationship is ongoing (an "open account") or whether the account is closed All credit reporting company files include personal and cannot be added to by the consumer. Determinidentifying information that allows the companies ing whether an account is open or closed is not to distinguish among individuals and construct a always straightforward, in part because some credifull record of each consumer's credit-related activi- tors do not report all account closures to the credit ties. Files always include the consumer's name (and reporting companies. Instead, in many situations, known aliases), current and previous addresses, and creditors simply stop reporting any information about social security number. Other identifying informa- an account, creating uncertainty about the current tion sometimes found in credit files includes date of status of the account. These "not currently reported" birth, telephone number(s), spouse's name, number accounts constitute a significant portion of all of dependents, income, and employment informa- accounts in the credit reporting company data. tion.13 These data are most often supplied by credi- For the discussion that follows, credit accounts are tors; they are taken from credit application files. grouped according to their status and whether or not Information about an individual's lifestyle (for exam- they are currently reported. An account is currently ple, sexual orientation) or personal characteristics reported if either (1) its status had been reported to (for example, race or national origin) are excluded the credit reporting company within two months of from credit reporting company files. the date that the sample of credit records was drawn One of the challenges that credit reporting compa- or (2) it was last reported (at any time) to be closed nies face is constructing a unified credit record for and had a zero balance at the date of last report. All a consumer. This challenge arises for a number of installment and mortgage accounts paid down to a reasons. An individual's social security number, for zero balance are treated as currently reported and example, may be recorded incorrectly on a loan appli- closed. With these definitions, accounts fall into one cation, or it may be transmitted incorrectly to the of four mutually exclusive groups, two of which are credit reporting companies. Problems also arise currently reported and two not currently reported. because the identifying information may not be current or because a consumer may have accounts under • Open credit accounts are currently reported and different names or addresses. For instance, a con- are not reported as closed. These include accounts sumer may be inconsistent in using a full name in all that a consumer can use to incur additional debt, such applications for credit or may change names, perhaps as an open-end revolving account, and closed-end after a marriage or divorce. Furthermore, accounts accounts that the consumer is paying down on a may be difficult to link to a given consumer if the scheduled basis, such as a mortgage or an installment consumer's address has changed. Credit reporting loan. companies have established a series of protocols to address each of these challenges. • Closed credit accounts are currently reported (as defined here) and are reported as closed. Closed accounts cannot be used to incur additional debt. Credit Account Information Virtually all these accounts have been fully repaid and have a zero balance, although a positive balance Credit accounts constitute the bulk of the information remains on a small number of closed revolving in the typical individual's credit record, and thus the accounts. information on credit accounts represents the majority of the information maintained by credit report- • Dormant accounts are non-installment, nonmorting companies. Credit account records contain many gage accounts that were last reported as open with no details about each account (see box "Credit Account outstanding balance but for which the last reporting Records"). was more than two months before the sample was drawn. These accounts are inactive, but from the data, one cannot determine whether they are open or Account Status closed. A basic element of credit reporting company data • An unknown accounts category contains all other is information on the status of each account with accounts that are not currently reported. All these accounts were reported as having a balance at their last reporting date. The category includes installment, 13. For further details, see "Consumer Information" on the web mortgage, and to a smaller extent, revolving accounts site of the Consumer Data Industry Association, www.cdiaoline.org. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • February 2003 Credit Account Records Credit account records include information on each "trade Account Description line" or credit account in a consumer's credit files. They • Account ownership (individual, joint, authorized user, include the following: co-signer) • Type of creditor (commercial bank, savings institution, Account Dates finance company, credit union, government entity, retailer, • The date the account was opened and so forth). • The date the account was closed (if applicable) • Type of account • The date the account was paid down to zero if the last — Closed end—a lump-sum loan that the borrower reported balance is zero repays over time according to an agreed-upon schedule • The account verification date (the date on which informa- • Mortgage—a special type of installment account tion on the account was taken) that is secured by a primary residence or other • The date the account information was recorded by the residential real estate such as a rental or vacation credit reporting company. property1 • Installment—nonmortgage accounts, such as auto Account Balances loans, that typically involve fixed monthly payments that fully amortize the total amount borrowed over • Account balance on the verification date (if any) the term of the loan, often secured. • The historic high balance (For mortgage or installment — Open end—consumers can borrow from time to time loans, this is generally the original balance.) at their discretion, typically up to some pre-authorized • Credit limit (the maximum amount that can be borrowed limit for revolving or open accounts) • Revolving—typically unsecured accounts that per- • Amount past due (If the account is delinquent, this is the mit considerable flexibility in the amount that must amount that was overdue as of the verification date.). be paid back in any given billing cycle, typically a month, such as a credit card account Payment Performance • Nonrevolving charge—the account holder may bor- • Payment status at the last report. This can have seven row funds for a short period (typically a month) and values: must repay in full at the end of this period 1. unknown or too new to rate • Check credit—a special form of revolving account, 2. satisfactory or paying as agreed typically not accessible by a credit card, that 3. 30 to 59 days past the due date (minor derogatory) includes personal lines of credit and overdraft pro- 4. 60 to 89 days past the due date (minor derogatory) tection on deposit-related accounts, such as a check- 5. 90 to 119 days past the due date (minor derogatory) ing account. 6. 120 or more days past the due date (major derogatory) • Loan purpose or type (for example, credit card, charge 7. other major derogatory instances (repossession, charge account, automobile loan, student loan, or FHA-insured off, collection, judgment, bankruptcy, foreclosure, pay- mortgage) ing under a wage earner plan). • Lender subscriber code. • Payment status pattern for the previous 48 months (not given for a major derogatory) • Dispute code (indicates if items in the account are under dispute) 1. An exception is the home equity line of credit, which, though secured by real property, is typically structured more like a line of credit or revolving • Remark codes (for example, notations for types of payaccount. Some home equity lines of credit are reported as mortgages; others ment problems and reasons for closing accounts). are often reported as open-end revolving accounts. that may have been paid off but lack a final record of The status was currently reported for about 74 perdisposition. It also includes accounts that were sold cent of the accounts in the sample.14 Of these or transferred to another creditor or collection depart- accounts, 57 percent were closed; the remainder ment or agency but not reported as closed by the were open. Because these accounts were currently selling or transferring institutions. Finally, it includes accounts that have encountered such severe pay- 14. The data used for this study represent the complete credit ment problems that the creditor no longer reports the records of a nationally representative sample of individuals. However, account. raw account distributions in such data are not proper estimates of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 55 reported, users of the data did not have to make Types of Creditors assumptions about their current status. The status of the remaining credit accounts was Credit reporting company data include the identities not currently reported, and thus assumptions had to and a type classification of the credit provider for be made in order to use the data. Among the accounts each account. For purposes of this analysis, the credithat were not currently reported, 70 percent were tor type classification was used to group accounts dormant. For these accounts, the only issue a user of into four categories: banking institutions (commerthe data had to address was whether the account cial banks and savings associations), finance compacould be used by a consumer. The accounts in the nies and credit unions, retailers, and "other." The unknown category, which comprised about 8 percent retail category includes department stores and jewof all the credit accounts in the sample, present a elry, computer, camera, and sporting goods stores. particularly vexing problem for users of the data "Other" includes national oil and gas companies, because this category includes accounts that had a travel and entertainment companies, other retailers, positive or unknown balance at the date of last report. and various creditors such as utility companies, real This category includes accounts that may have been estate firms, and government entities. sold, transferred, or paid off but are not reported as Banking institutions were the largest source of such. Also included are accounts, particularly deroga- credit accounts recorded in the credit reporting comtory accounts, that are still outstanding but on which pany files, accounting for nearly 45 percent of all the the lender has ceased reporting. credit accounts and 48 percent of open accounts. The second largest source of credit accounts was retailers. The distribution of accounts by creditor type varies Types of Accounts some by account status and is largely a function of the types of accounts that creditors offer. For exam- Credit reporting companies ask creditors to place ple, finance companies and credit unions offer primaeach credit account into one of four broad groupings: rily installment accounts, which are more likely than two types of open-end account (revolving and nonre- revolving accounts to have been paid down and volving) and two types of closed-end account (install- closed. Banking institutions and retailers offer relament and mortgage). Within these four categories, tively large numbers of revolving accounts, which further distinctions can be made by users of the tend to be used from time to time and to retain their data based on other characteristics—for example, the open status. reported purpose of the loan or the type of creditor. Revolving accounts were by far the most common type of credit account found in the sample, comprising about 63 percent of all credit accounts and about Date Account Opened and 71 percent of all open accounts (table 2). Although Last Had Balance revolving accounts made up the largest share of accounts, approximately 28 percent of these accounts Most credit accounts were several years old when were dormant. Installment accounts composed the the sample was drawn; only 8 percent of the credit second largest share of credit accounts, representing accounts recorded in the files were less than one year approximately 27 percent of all accounts in the credit old, and nearly two-thirds had been opened at least reporting company files. Much less frequently found four years previously. Among accounts that were in these files are records of nonrevolving charge known to be open, about 20 percent had been open accounts and mortgages. Given the relatively short less than one year, and nearly 58 percent had been terms to maturity of most installment loans, it is not open four years or less. Not surprisingly, a large surprising to find that installment accounts composed proportion of dormant and closed accounts were at a disproportionate share of all closed accounts in the least four years old. sample of credit records. Only about one-third of accounts currently had a balance when the sample was drawn. However, twothirds of the open accounts showed a balance. Overthe distribution of characteristics of a representative sample of credit accounts. This disparity occurs because many accounts, including all, 28 percent of accounts had not had a balance joint accounts or accounts with co-signers, are contained in the credit within four years of the time the sample was drawn. records of multiple individuals. An adjustment for such multiple More than 50 percent of the dormant accounts had reporting was made in computing the statistics reported in this article to make them representative of all credit accounts. not had a balance within four years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • February 2003 Payment Status and Balances Owed rently reported and were last reported with a positive or unknown balance. The credit account records include information on the extent of consumer payment problems and the Status at most-recent report. About 5 percent of all amount owed on an account. Nearly 70 percent of accounts were reported as having payment problems all accounts and 33 percent of accounts currently at the time of the most-recent reporting; most of the reported as open showed no outstanding balance at accounts with payment problems were reported as the time of most recent reporting. Among accounts having a major derogatory. The incidence of accounts with balances, more than one-fourth of the balance exhibiting a major derogatory at last report differs dollars at last date of reporting were associated with from that of accounts that ever exhibited a major accounts in the "unknown" category (table 2, last derogatory because more than half the accounts with row). The large share of outstanding balances that a historic major derogatory had been closed and fell in the unknown category highlights the impor- showed a zero balance. tance of decisions about how to treat accounts in this category when using the data for credit evaluations or other purposes. Interpreting the Credit Account Data With respect to payment performance, accounts were sorted into one of three categories: accounts As the preceding discussion highlights, credit reportwith no "derogatory" (no record of late payment), ing company data provide a wide-ranging and comthose with evidence of a "minor derogatory" (a late prehensive picture of accounts that reflects individupayment of 30-59, 60-89, or 90-119 days), and als' experiences with credit. However, the discussion those with evidence of a "major derogatory." Credit also reveals that, in some instances, the data are not accounts categorized as major derogatory include any sufficiently up-to-date or complete to permit a clear account that is delinquent 120 days or more and all understanding of an account's current status. The credit accounts reported as associated with bank- following sections present a more detailed look at ruptcy, foreclosure, repossession, civil judgment, col- the information in the credit reporting company lection, charge-off, and so forth.15 files, focusing on items most pertinent to credit The analysis presents two ways of describing payevaluation.16 ment history. First, accounts are sorted by their worst Credit evaluators rely on a number of factors in recorded payment problem. Second, accounts are assessing the credit quality of individuals. The exact sorted by their payment status at the time the credit weight attached to specific factors varies across reporting company last received information on the evaluators and their different models, but the factors account (their "status at most-recent report"). As generally fall in three broad areas: the level of a discussed below, both worst payment problem and consumer's indebtedness, the payment history, and status at most-recent report are weighed heavily by credit account characteristics.17 creditors when conducting credit evaluations. Worst payment problem. More than 85 percent of all Level of Consumer Indebtedness accounts had no record of a payment problem. The remaining accounts were split about evenly between When evaluating credit, creditors consider the type those with, at worst, a minor derogatory and those and amount of debt a consumer has and the proporwith a major derogatory. Patterns differ sharply tion of available credit he or she has in use (credit between open and closed accounts. Only about 3 per- utilization). For revolving accounts, credit utilization cent of open accounts had a major derogatory status, is measured as the proportion of available credit in whereas 9 percent of closed accounts had this status. use (outstanding balance divided by credit limit). For This difference results from the general industry mortgage and installment accounts, credit utilization practice of closing accounts that experience severe is generally measured as the proportion of the origipayment problems. More than one-third of the accounts that had a major derogatory were not cur- 16. Credit evaluation is the most prominent use of the data, and the original motivation for its collection, but other uses of the data exist and may emphasize different items. 15. Regulatory guidance for banking institutions requires that 17. For a more detailed discussion of factors considered in credit closed-end loans, such as installment loans, must be charged off after evaluation, including the relative weights given to different factors, 120 days of delinquency. Open-end loans are required to be charged see the description on the web site of Fair Isaac and Company, off after being delinquent 180 days or more. See Federal Reserve www.myfico.com. Also see Avery et al., "Credit Risk, Credit Scoring, Board Supervisory Letter SR 99-5, February 18, 1999. and the Performance of Home Mortgages." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 57 nal loan amount that is unpaid, referred to here as the period cutoff. The choice of the cutoff affects the paydown rate. number of accounts deemed to be active and the Fundamental to measuring consumer indebtedness potential borrowing capacity of an individual but is deciding which accounts to treat as active—that is, has no bearing on the amounts owed because all installment and mortgage accounts with positive bal- the dormant accounts had zero balances at the time ances and revolving accounts upon which consumers of last report. For reasons discussed below, this study can draw. Clearly, credit evaluators would include includes no accounts from the unknown category, currently reported open accounts as active in any which are believed most likely to be closed. calculations. The difficulty, however, is in determining how to treat accounts that are in the dormant Outstanding balances. Most consumer indebtedness and unknown categories. The dormant category likely on active accounts involves mortgages. Mortgages includes many accounts that are not currently represented about 67 percent of the dollars outstandreported but can be further drawn upon by the con- ing but only 5 percent of the active credit accounts sumer. For example, some creditors do not provide (table 3). Nearly 30 percent of all active mortgages updates for accounts that have a zero balance and no in the data had outstanding balances of $100,000 recent activity. The unknown category also likely or more. Installment accounts, accounting for about includes some accounts that are still active. 22 percent of the balances, involved the second larg- For the present analysis of consumer indebtedness, est proportion of all consumer debt. Installment the definition of "active" includes currently reported accounts also tended to be relatively large; 46 percent open accounts as well as dormant revolving accounts had balances of $5,000 or more. In contrast, revolvthat were last reported within the year before the date ing accounts represented a relatively small share of the sample was drawn. Discussions with industry outstanding balances (11 percent), even though they professionals, however, indicate that there is no strict were by far the largest proportion of active accounts rule regarding a single appropriate choice of time measured by number. This difference arises because 3. Open accounts and balances, by type of account Percent except as noted Dollar size of balance, Dollar-weighted Accounts Distribution of balances, by dollar size of balance accounts with balances a balance1 Type of account Share Share 100,000 Share Share of of all 1- 250- 500- 1,000- 5,000- 10,000- of of all Mean Median account open 249 499 999 4,999 9,999 99,999 account open type accounts type accounts Revolving 100.0 74.3 53.0 14.6 77..11 6.8 13.5 3.7 1.2 * 2,015 595 100.0 11.3 Check credit 2.5 1.9 51.2 5.4 4.9 5.3 14.3 6.2 12.3 .3 9,736 2,934 12.8 1.4 Banking institution 49.9 37.0 40.6 13.4 7.6 8.4 21.6 6.7 1.7 * 2,370 1,022 74.2 8.4 Finance company or credit union 6.3 4.7 39.8 17.6 8.9 10.3 18.7 3.0 1.6 * 1,887 645 7.6 .9 Retailer 37.9 28.1 70.5 16.8 6.3 4.0 2.3 .1 .0 .0 378 201 4.5 .5 Other2 3.4 2.5 66.0 9.8 6.9 7.6 9.5 .2 .0 847 513 1.0 .1 Nonrevolving 100.0 4.2 48.4 34.3 5.2 4.1 5.2 1.3 1.4 * 1,227 107 100.0 .4 Installment 100.0 16.5 .4 3.7 4.0 7.5 38.1 20.1 25.8 .3 8,256 4,354 100.0 21.8 Banking institution 30.5 5.1 .1 1.5 2.2 4.6 32.2 24.7 34.1 .7 11,077 6,697 41.1 8.9 Auto credit 11.3 1.9 * .8 1.3 2.4 22.4 30.7 42.4 .1 10,005 8,743 13.8 3.0 Finance company or credit union 22.6 3.7 .1 1.9 2.4 4.2 25.3 24.7 41.3 .2 10,366 8,225 28.5 6.2 Auto credit 16.4 2.7 * 1.1 1.2 2.1 19.8 27.3 48.6 * 10,973 9,745 21.9 4.8 Retailer and other2 46.9 7.8 .8 6.0 6.0 11.0 48.2 14.8 13.0 .2 5,384 2,620 30.5 6.6 Mortgages 100.0 5.0 * .2 .1 .2 2.2 3.2 64.2 29.9 83,699 68,000 100.0 66.5 All open accounts 100.0 100.0 41.5 12.9 6.1 6.5 16.7 6.3 8.4 1.6 10,678 1,483 100.0 100.0 WW MEMO llll Closed accounts with positive balances Currently reported 100.0 .0 20.2 16.5 18.3 34.3 8.4 2.3 * 2,010 822 100.0 Not currently reported ... 100.0 .0 20.0 10.3 12.4 31.1 9.4 14.1 2.8 11,357 1,455 100.0 NOTE. Excludes accounts in a major derogatory status (for definition, see . . . Not applicable table 2, note 2). * Less than 0.05 percent. 1. Excludes accounts in dispute. 2. "Other" includes national oil and gas companies, travel and entertainment companies, utility companies, real estate firms, government entities, and smaller retailers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Federal Reserve Bulletin • February 2003 4. Borrowing capacity on open accounts Percent except as noted A. Credit limits reported SShhaarree ooff aaccccoouunntt ttyyppee MMeeaann MMeeddiiaann Distribution of accounts by dollar size of credit limit —— hhaavviinngg ccrreeddiitt ccrreeddiitt ccrreeddiitt lliimmiitt lliimmiitt lliimmiitt ((ddoollllaarrss)) ((ddoollllaarrss)) 1- 500- 1,000- 5,000- 10,000- 25,000 rreeppoorrtteedd 499 999 4,999 9,999 24,999 or more Revolving 67.5 4,534 2,500 8.5 16.3 40.5 22.4 11.0 1.3 Check credit 84.3 12,002 3,500 6.1 12.2 35.6 15.5 15.5 15.1 Banking institution 60.1 7,036 6,000 3.1 5.4 27.8 39.5 22.4 1.8 Finance company or credit union 88.4 3,467 2,500 4.5 10.5 60.9 19.2 4.4 .5 Retailer 71.9 1,575 1,000 15.9 30.3 47.8 5.6 .4 * Other1 74.5 2,808 2,500 3.2 11.3 71.6 13.0 1.0 * Installment 99.5 11,152 7,060 2.6 4.3 33.9 18.5 32.6 8.3 Mortgages 99.6 92,797 75,400 * * .3 .9 7.7 91.1 more than half of all revolving accounts had zero rate. The most common approach in these circumbalances and many accounts had relatively small stances is to use the highest balance ever reported credit limits, effectively restricting the amounts a on the account (either the current balance or the consumer could borrow. Among the types of revolv- historic high balance) as a surrogate for the credit ing accounts, those issued by retailers are the most limit. As described below, this alternative approach likely to show a zero balance. creates very different profiles regarding the extent to The large share of revolving accounts that showed which revolving accounts have been drawn on. For a zero balance at last report is not surprising. The use mortgages and installment loans, the credit limit and of credit cards varies greatly because some cards are the high balance (the original amount borrowed) are unused for a period of time whereas others are used the same, and so the profiles will be identical. regularly either as a convenient means of payment Credit limits on revolving accounts are not typior a source of credit. Whether a card is reported as cally very large. About 25 percent of the sample having a balance is not an indicator of whether the accounts meeting the authors' definition of active had card is being used to borrow for an extended period limits under $1,000, and about 41 percent had credit or is being used simply as a convenient payment limits in the $1,000 to $4,999 range (table 4A). Only device. Even when a consumer pays the full balance a very small proportion of revolving accounts had billed each month on a card used regularly, the credit limits of $25,000 or more.19 By contrast, mortgages report is likely to show a balance due. Such a balance and, to a lesser degree, installment loans had much appears because payments are not received and cred- higher credit limits (original balances). More than ited immediately and additional charges are likely to 90 percent of the mortgage accounts had original be made between the date the last bill was generated balances over $25,000, and 41 percent of installment and the date that balance information is sent to the loans had original balances of $10,000 or more. credit reporting company. Using data from the sample, one can also profile the distribution of credit limits across different types Credit limits. To calculate a utilization rate for a of creditors. For example, the average credit limit revolving account, one must have information on for revolving accounts from all sources was approxiboth an account's outstanding balance and its credit mately $4,500. Credit limits for revolving accounts limit. The credit limit, however, is not regularly tended to be highest at banking institutions, at about reported for all accounts. Approximately one-third of $7,000, and lowest among retailers, at about $1,600. all active revolving accounts in the sample lacked such information (table 4A).18 For these accounts, Consumer Credit Reporting in America," Federal Reserve Bank of other techniques are required to estimate a utilization Philadelphia, Working Paper no. 02-21, November 2002. 19. The data also indicate that within the broad revolving account 18. The incidence of missing credit limits is significantly lower in category used here, check credit accounts have, on average, much credit reporting company data at present. According to industry esti- higher credit limits than other types of revolving accounts. The mates, credit limits are currently missing on about 13 percent of average credit limit for active check credit accounts reporting a limit revolving accounts. The higher incidence of missing limits in the was about $12,000 compared with an average of $4,500 for all types sample may stem from a period when a few large creditors decided to of revolving accounts. The relatively high credit limits for check suspend reporting of this item for competitive reasons. Pressure from credit accounts may reflect the inclusion of some home-secured loans financial institution regulators and the credit reporting companies in that category. So-called home equity lines of credit typically appears to have convinced these creditors to resume reporting credit involve relatively high credit limits because their credit risk is mitilimits. See Robert M. Hunt, "The Development and Regulation of gated by the security offered by the account holder. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 59 4.—Continued Percent except as noted B. Credit limits not reported (highest balance used as a proxy) SShhaarree ooff Distribution of accounts by dollar size of highest balance Memo aaccccoouunntt ttyyppee MMeeaann MMeeddiiaann TTyyppee ooff aaccccoouunntt hhaa nn vv oo ii tt nn gg bb hh aa iigg llaa hh nn ee cc ss ee tt bb hh aa iigg llaa hh nn ee cc ss ee tt 1- 500- 1,000- 5,000- 10,000- 25,000 Hi h s i t g o h r ic Hi h is ig to h r ic ccrreeddiitt ((ddoollllaarrss)) ((ddoollllaarrss)) 499 999 4,999 9,999 24,999 or more balance balance rree ll pp ii oo mm rr ii tt tt ee dd jfBPM rep n o o r t t ed reported Revolving 32.5 1,351 353 43.8 19.2 27.9 6.9 1.8 .4 24.7 75.3 Check credit 15.7 9,887 2,471 6.2 11.7 37.1 16.6 14.0 14.4 17.8 82.2 Banking institution 39.9 1,605 374 30.7 16.3 38.5 11.7 2.5 .3 33.7 66.3 Finance company or credit union 11.6 3,396 1,520 14.6 13.8 51.1 11.4 7.5 1.6 9.6 90.4 Retailer 28.1 484 310 64.7 22.8 12.3 .2 * .0 10.0 90.0 Other1 25.5 522 400 52.0 32.7 15.2 .2 .0 .0 16.9 83.1 NOTE. Excludes accounts in a major derogatory status (for definition, see 1. Includes national oil and gas companies, travel and entertainment comtable 2, note 2) or in dispute. panies, utility companies, real estate firms, government entities, and smaller * Less than 0.05 percent. retailers. Differences in credit limits across types of institu- a different measure of credit limit and from correlations likely reflect a combination of factors, including tions between the propensity of a creditor to report a differences in the creditworthiness of customers, cus- credit limit and the account characteristics. For examtomer demand for credit, and the types of transac- ple, observed differences in the share of accounts that tions for which the account can be used. For example, had utilization rates of zero can be caused only by a furniture store may offer higher credit limits on differences in the propensity to report credit limits.20 its revolving accounts than a retailer carrying only However, differences in the proportion of active reapparel and accessories. volving accounts calculated to have either relatively The profile of credit limits differs notably between low utilization rates (from 1 percent to 24 percent) or accounts that had credit limits reported and those very high rates (95 percent or more) can be strongly that used the highest-balance proxy. For revolving influenced by which measure of credit limit is used. accounts, the latter had a much larger percentage of Here, some observed differences are substantial. For accounts with limits under $1,000 than did the former revolving accounts with reported credit limits, 20 per- (compare the revolving account category in tables 4A cent had a utilization rate in the low range, whereas and 4B). Thus, the use of the highest-balance mea- 5 percent of accounts using the highest-balance proxy sure for credit limits on accounts in which limits are fell in this range. At the other extreme, only 6 percent not reported likely understates the actual credit limits of active revolving accounts with reported credit available on those accounts. limits had a utilization rate of 95 percent or more, whereas 31 percent of revolving accounts that used Utililization rates. Combining information on out- the highest-balance proxy had utilization rates this standing balances and credit limits (or highest bal- high. ances for revolving accounts if the credit limit was Differences in calculated utilization rates also are not reported) allows users of the data to calculate clearly revealed in estimates of the mean and median account utilization rates. As before, notable differ- utilization rates using the two different measures of ences exist between accounts with credit limits credit limit. Not surprisingly, mean and median utilireported and those using the highest-balance proxy zation rates were substantially lower for revolving (table 5). These differences stem both from the use of accounts with a reported credit limit than they were for accounts using the highest-balance proxy. Evidence from the Federal Reserve's 2001 Survey of Consumer Finances shows that households with a line of credit have an average income of approximately $111,000. In comparison, those with a revolving account have an average income of about $82,000. For 20. For the construction of tables 3, 4, and 5, the authors assumed further information about the survey, see Ana M. Aizcorbe, Arthur B. that dormant accounts last reported within one year of when the Kennickell, and Kevin B. Moore, "Recent Changes in U.S. Family sample was drawn were still open to the consumer and could be used Finances: Evidence from the 1998 and 2001 Survey of Consumer for borrowing. The authors also reviewed the ways in which the Finances," Federal Reserve Bulletin, vol. 89 (January 2003), pp. 1-32. patterns shown in these tables changed when a two-year rule was For information on home equity lines of credit see Glenn B. Canner, used. As might be expected, the main effect was to increase the Thomas A. Durkin, and Charles A. Luckett, "Recent Developments proportion of revolving accounts showing a zero utilization; however, in Home Equity Lending," Federal Reserve Bulletin, vol. 84 (April the effect is small—increasing the share by only a couple of percent- 1998), pp. 241-51. age points. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 Federal Reserve Bulletin • February 2003 5. Use of borrowing capacity on open accounts Percent Memo: Share of credit limit or Distribution of accounts, by percent of credit limit or highest-balance proxy used highest-balance proxy used, Type of account accounts with a balance 1-24 25-49 50-74 75-94 95 or more Mean Median Credit limits reported Revolving 55.1 20.0 6.8 5.8 6.6 5.8 19.6 .0 Check credit 51.2 9.4 7.4 8.9 12.8 10.2 30.6 .0 Banking institution . 41.1 26.5 7.9 7.0 9.1 8.4 26.0 2.3 Finance company or I credit union ... 38.2 26.7 8.6 9.3 7.5 27.3 5.3 Retailer 73.4 12.7 4.9 3.7 2.9 2.4 10.5 .0 Other1 64.9 15.4 7.4 5.1 4.0 3.2 14.4 .0 Installment .4 8.5 13.0 20.8 25.2 32.1 72.7 81.7 Mortgage 2.9 4.7 11.7 31.6 49.1 86.2 94.7 Credit limits not reported (highest-balance proxy used) Revolving 48.7 5.3 4.2 4.8 5.7 31.2 41.3 5.5 Check credit 51.3 6.4 6.2 8.6 12.2 15.4 34.3 .0 Banking institution . 40.0 2.2 1.9 3.5 5.8 46.7 54.8 85.4 Finance company or credit union ... 52.8 6.3 6.5 8.2 12.1 14.1 32.9 Retailer 63.1 11.2 8.3 6.9 4.9 5.7 18.5 Other1 69.2 4.7 5.3 5.8 4.9 10.1 20.3 NOTE. Excludes accounts in a major derogatory status (for definition, see 1. Includes national oil and gas companies, travel and entertainment comtable 2, note 2) or in dispute. panies, utility companies, real estate firms, government entities, and smaller * Less than 0.05 percent. retailers. Patterns of missing credit limits. The discussion The group in the middle, representing 20 percent above highlights the different implied utilization of the creditors, is also interesting. These creditors profiles of accounts with and without credit limits reported limits for some active revolving accounts reported. To detect systematic patterns in the report- but not for others. Concerns have been raised that ing of credit limits, a linking index variable (dis- some creditors report limits selectively—in particucussed in footnote 2) was used to examine the rela- lar, that they do not report limits for some subprime tionship between the creditor and the likelihood that customers because they do not want these customers a credit limit was missing. Results suggested that to be targeted for solicitation by other creditors. The most of the variation in the reporting of credit limits analysis finds only mild support for this view. Overfor active revolving accounts can be explained by the all, 51 percent of the active revolving accounts of identity of the creditor. Restricted to creditors that subprime customers held at creditors in this middle reported a large number of accounts, the analysis group had their credit limit reported versus 53 perdivided these creditors into three groups: those that cent of accounts of their prime customers.22 Howreported credit limits for fewer than 5 percent of their ever, for a subset of creditors in this middle group— accounts; those that reported credit limits for more about 5 percent of the creditors in the analysis—all than 95 percent of accounts; and all others.21 In the specializing (more than 50 percent of their accounts) first group were only 12 percent of the creditors in in subprime lending, some degree of selective reportthe analysis, but they accounted for 74 percent of the ing did appear to take place. For prime customers of total accounts with missing credit limits and less than these creditors, credit limits were reported about 0.03 percent of those with limits reported. At the 77 percent of the time versus 40 percent for subprime other extreme, the second group, representing 68 per- customers at these institutions. cent of the creditors and 86 percent of the accounts for which limits were reported, accounted for less than 1 percent of the accounts with missing limits. Payment History Perhaps the most important factors considered in credit evaluation are a consumer's history of repay- 21. For this analysis the authors used a threshold of seventy-five active revolving accounts reported in the sample to define a "large" creditor. This criterion was met by 674 creditors. These creditors 22. The authors used an internally developed credit score supplied accounted for 96 percent of all missing credit limits in the credit by the credit reporting company with the credit files to make a rough reporting company files. determination of prime and subprime borrowers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 61 6. All credit accounts and recently opened accounts, by worst payment status recorded Percent All accounts Recently opened accounts Minor derogatory Minor derogatory Major derogatory Major derogatory (days delinquent) (days delinquent) TTyyppee ooff aaccccoouunntt NNoo NNoo ddeerrooggaa-- 120-149 TToottaall ddeerrooggaa-- 120-149 TToottaall ttoorryy days ttoorryy days 30-59 60-89 90-119 Other 30-59 60-89 90-119 Other delin- delinquent quent Revolving 85.6 4.6 1.8 .8 1.2 6.0 100.0 92.5 3.1 1.2 .6 .7 1.9 100.0 Check credit 90.0 3.5 1.1 .6 .7 4.2 100.0 94.9 2.5 .6 .4 .3 1.4 100.0 Banking institution 86.1 4.3 1.7 .7 1.0 6.3 100.0 91.9 3.3 1.4 .6 .8 2.1 100.0 Finance company or credit union 86.5 5.5 1.8 .9 1.4 3.9 100.0 94.0 3.0 .9 .4 .6 1.0 100.0 Retailer 84.7 5.0 2.0 1.0 1.4 5.9 100.0 92.8 3.0 1.0 .6 .7 1.8 100.0 Other1 83.4 4.6 1.7 .9 1.4 8.0 100.0 94.0 2.7 .8 .4 .5 1.7 100.0 Nonrevolving 72.6 2.2 1.5 1.1 2.9 19.7 100.0 64.1 2.5 1.7 1.3 2.5 27.9 100.0 Installment 85.3 4.3 1.6 1.0 1.7 6.1 100.0 90.1 3.4 1.1 .7 .9 3.8 100.0 Banking institution 90.3 4.0 1.4 .6 .7 3.0 100.0 94.0 3.0 .9 .3 .3 1.5 100.0 Finance company or credit union 87.4 6.1 1.4 .4 .6 4.2 100.0 93.9 3.5 .8 .2 .3 1.2 100.0 Retailer and other1 79.7 3.5 1.8 1.7 3.3 9.9 100.0 85.3 3.6 1.5 1.1 1.7 6.9 100.0 Mortgages 91.0 4.3 1.4 .7 .8 1.9 100.0 96.2 2.3 .5 .2 .2 .6 100.0 All accounts 85.3 4.4 1.7 .9 1.4 6.4 100.0 90.9 3.1 1.1 .6 .8 3.4 100.0 1. "Other" includes national oil and gas companies, travel and entertainment companies, utility companies, real estate firms, government entities, and smaller retailers. ing loans and any evidence of money-related pub- derogatory, effectively preventing the consumer from lic actions or non-credit-related collections. Credit adding new debt to that account. The payment perforevaluators consider whether a consumer has a history mance profiles obtained from the data are influenced of repaying balances on credit accounts in a timely both by consumers' behavior regarding their accounts fashion. Such an analysis considers not only the and by the reporting practices of creditors. frequency of any repayment problems but also their severity (how late), recency, and dollar magnitude. Worst payment status recorded. Credit payment Repayment performance is evaluated on the full history can be evaluated by focusing on the worst range of accounts that a consumer holds, spanning derogatory status recorded for an account, that is, accounts that vary by type of account and type of on the most severe problem in an account. About creditor. This section profiles the credit reporting 85 percent of revolving accounts and of installment company data on payment history on credit accounts; accounts showed no record of a delinquent payment later sections present data on public records and or of a major derogatory (table 6). Mortgages showed collection actions on non-credit-related bills. fewer problems, with 91 percent of these accounts In assessing the credit circumstances of an indi- showing no evidence of payment problems. This vidual, creditors often look at both the consumer's large proportion may reflect the high priority that recent payment experience on credit accounts and his consumers place on meeting payment obligations or her record of payments over a much longer secured by their homes. Nonrevolving accounts were period.23 In general, an individual with a major most likely to have experienced a major derogatory; derogatory will find qualifying for new credit diffi- however, the high incidence of major derogatories cult, may face high interest rates for the credit among nonrevolving accounts may be due not to received, or may be limited in further borrowing on poorer consumer performance but rather to the nonexisting open accounts. In addition, creditors typi- reporting of accounts with no major problems. cally close an account that is associated with a major Among all installment accounts, a little more than half of those evidencing a payment problem involved a major derogatory. In contrast, only about 30 per- 23. As noted, the Fair Credit Reporting Act specifies that consumer cent of mortgages with a payment problem involved credit reports cannot include any adverse item of information that is more than seven years old unless it involves a bankruptcy (which has a major derogatory, while nearly all payment proba ten-year limit), criminal conviction (no time limit), or one of a few lems among nonrevolving accounts involved a major other narrow exceptions (see box "A Summary of Consumer Rights derogatory. under the Fair Credit Reporting Act"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 Federal Reserve Bulletin • February 2003 7. All credit accounts, distributed by payment status at most-recent report Percent No derogatory Minor derogatory Major derogatory (account status) (days delinquent) TTyyppee ooff aaccccoouunntt TToottaall Closed, Open, Open, 120-149 no no positive 30-59 60-89 90-119 days Other balance balance balance delinquent Revolving 47.7 22.9 24.8 .5 .3 .2 .4 3.2 100.0 Check credit 52.8 20.1 23.6 .3 .2 .2 .3 2.4 100.0 Banking institution 46.9 18.0 30.4 .5 .3 .2 .4 3.3 100.0 Finance company or credit union 56.4 14.5 25.3 .5 .3 .2 .5 2.4 100.0 Retailer 47.2 30.5 17.9 .4 .2 .2 .4 3.3 100.0 Other1 41.9 31.7 20.2 .6 .2 .2 .6 4.6 100.0 Nonrevolving 43.8 16.0 22.5 .5 .4 .4 1.8 14.6 100.0 Installment 69.6 .1 24.7 .6 .3 .2 .6 3.9 100.0 Banking institution 74.9 * 22.4 .5 .2 .1 .2 1.7 100.0 Finance company or credit union 70.6 * 25.6 .7 .2 .1 .2 2.7 100.0 Retailer and other1 64.5 .2 26.3 .6 .4 .4 1.1 6.6 100.0 Mortgages 55.4 * 42.6 .8 .3 .1 .4 .5 100.0 All accounts 53.8 15.1 25.7 .5 .3 .2 .5 3.8 100.0 1. "Other" includes national oil and gas companies, travel and entertain- * Less than 0.05 percent, ment companies, utility companies, real estate firms, government entities, and smaller retailers. About 91 percent of recently opened accounts lent among accounts with minor delinquencies, showed no record of delinquent payments or of reflecting the fact that minor delinquency is a transia major derogatory. Such performance might be tory state; the accounts either cure or deteriorate expected, in part because payment problems take into a major derogatory. For example, only 0.5 pertime to emerge as consumers encounter adverse cent of all accounts at the most-recent report were changes in their employment or personal circum- 30-59 days past due whereas more than 4 percent had stances (for example, health problems or marital dif- a worst payment status of 30-59 days past due. ficulties). Although the incidence of any problem is When evaluating credit payment history, creditors lower for recently opened accounts than for others, consider the length of time since a currently nonthe likelihood that a minor delinquency deteriorates derogatory account was last delinquent. Recent into a major derogatory is about the same as for all payment problems on an account generally weigh accounts. Among the recently opened accounts, mort- more heavily than problems further in the past. This gages again evidenced the fewest problems, with concept is most relevant for active accounts. Among 96 percent of these accounts showing no payment accounts that were active when the sample was problems. drawn, 91 percent had never been delinquent (table 8). Among active accounts that had been delin- Payment status at most-recent report. This section quent at some time but were not delinquent at last details the distribution of all accounts according to report, a little more than half were delinquent during their most-recent reported payment performance the twelve-month period preceding the drawing of when the sample was drawn. This measure is the last the sample. status for the account reported by the creditor. Thus, for accounts not currently reported, this status may have changed but not have been reported by the time Current Status the sample was drawn. The proportion of accounts experiencing current The data presented in tables 3 through 8 reflect the payment problems is much lower than the proportion status of accounts at the date of most-recent reportof accounts ever having a payment problem (compare ing. A credit evaluator, however, is likely to be intertable 7 with table 6). This difference arises because ested in the current status of accounts—that is, the many accounts experiencing payment problems status at the time the credit evaluation is made. For "cure"—that is, regain nonderogatory payment sta- currently reported accounts or for accounts that are tus (most of these end up as closed accounts with closed or dormant, the account status at the date of zero balances). Account curing is particularly preva- last reporting will be the correct current status in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 63 8. Nonderogatory credit accounts, distributed by the length of time since last delinquency recorded Percent All nonderogatory accounts Active nonderogatory accounts TTyyppee ooff aaccccoouunntt More More 1-12 13-24 than 1-12 13-24 than Never Unknown Total Never Unknown Total months months 24 months months 24 months months Revolving 89.8 3.3 2.7 1.5 2.8 100.0 91.1 .5 4.6 2.0 1.8 100.0 Check credit 93.2 2.4 1.6 .9 1.9 100.0 94.4 .3 2.9 1.3 1.1 100.0 Banking institution 90.4 3.6 2.7 1.3 2.0 100.0 91.9 .4 4.5 1.7 1.5 100.0 Finance company or credit union 89.9 2.8 2.3 1.5 3.5 100.0 90.3 1.0 4.8 2.0 2.0 100.0 Retailer 88.7 2.9 2.8 1.7 3.8 100.0 89.8 .6 4.9 2.4 2.3 100.0 Other1 88.9 3.9 2.9 1.7 2.6 100.0 91.4 .5 4.1 2.2 1.7 100.0 Nonrevolving 88.3 7.7 1.7 1.0 1.4 100.0 93.5 1.0 3.2 1.2 1.1 100.0 Installment 90.3 5.2 1.5 .8 2.1 100.0 91.8 1.1 4.6 1.6 1.0 100.0 Banking institution 92.9 3.9 1.2 .6 1.5 100.0 93.4 .7 3.9 1.3 .7 100.0 Finance company or credit union 90.9 3.4 1.7 1.0 3.0 100.0 92.3 .3 5.1 1.5 .8 100.0 Retailer and other1 87.6 7.5 1.7 1.0 2.2 100.0 90.3 1.8 4.8 1.8 1.2 100.0 Mortgages 92.8 2.7 1.6 .9 2.0 100.0 93.2 .4 3.2 1.4 1.8 100.0 All nonderogatory accounts .. 90.1 3.9 2.3 1.3 2.5 100.0 91.4 .6 4.5 1.8 1.7 100.0 1. "Other" includes national oil and gas companies, travel and entertainment companies, utility companies, real estate firms, government entities, and smaller retailers. virtually all cases. One exception occurs because of likely to differ in most circumstances from that last inconsistencies in the way creditors report account reported. Since these accounts showed positive baldelinquencies. About 11 percent of active accounts ances at the date of last reporting (signifying that they were reported by creditors that did not report minor were open), one can infer that their status had delinquencies for any accounts. An additional 12 per- changed by the time the sample was drawn: Either cent were reported by creditors that did not report the account was closed or transferred or the account delinquencies of 30-59 days. Nonrevolving accounts holder made payments, and thus changed his or her were particularly likely to fall in these categories. No balance, or did not make payments, in which case evidence indicates that these creditors do not update the performance status worsened. The most notable their accounts at the same rate as other creditors; exception is for records of some types of student instead, they appear to be reporting accounts as loans where repayment may be deferred for a period nondelinquent until the accounts reach a seri- of time. About 67 percent of all accounts in the ously delinquent status. Consequently, customers of unknown category were not in major derogatory these creditors tend to show a lower incidence of status at the date of last reporting. About two-thirds minor delinquencies than do the customers of other of these accounts were revolving or open noncreditors. revolving accounts. Most of these accounts require For accounts in the "unknown" category, a much monthly payments, and thus it seems highly unlikely more serious question is whether or not the account that their status at last report reflects their current status at the date of last reporting is the same as the circumstances. account's correct current status. For this category, the Recognizing the high likelihood that many noncurcreditor has not updated the account information for rently reported accounts have had a change in status, at least three months (and often much longer), and the credit reporting companies have adopted "stale the account shows a positive balance, raising the account" rules. The credit reporting company's rule likelihood that the status has changed since it was in place at the time the sample was drawn was to last reported. There is reason to believe that major define all revolving and nonrevolving accounts with derogatory accounts in the unknown category differ positive balances and no major derogatories as stale from others in their likelihood of a changed status; if they had not been reported within six months. Stale thus, they are discussed separately. accounts were treated as closed and were assigned a zero balance. The data reflect this rule. Sixty-one per- Unknown category accounts not in major derogatory cent of the revolving and nonrevolving accounts in the unknown category had been reported within six status. The current status of nonderogatory and minor months before the date the sample was drawn (and derogatory accounts in the unknown category is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 Federal Reserve Bulletin • February 2003 more than 80 percent within the year before). These drawn.25 If these creditors no longer reported to the accounts are likely candidates for the stale account credit reporting companies, these accounts could have rule, and the probability that they have been closed been updated only by the consumer or by a credit or transferred is significant. The remaining accounts, reporting company action, such as applying a stale constituting about 3 percent of all nonclosed revolv- account rule. ing and nonrevolving accounts, were exceptions to The consequence of accounts that have not been the stale account rule. The actual status of these accurately reported as closed or transferred will, in accounts is less clear. most cases, be that consumers will show higher Stale account rules were not used for mortgage and aggregate account balances. The issue goes beyond installment accounts by the credit reporting com- the actual balances owed and includes uncertainty pany that supplied the data for this study.24 As a about the extent of any payment problems as well. As consequence, a significantly higher percentage of shown in table 2, about 36 percent of all accounts that these accounts than of revolving and nonrevolving were last reported as minor delinquencies were in the accounts are in the unknown category. Almost one- unknown category. For four-fifths of the installment third (32.5 percent) of all nonderogatory and minor accounts and about two-thirds of the other accounts derogatory mortgages last reported with a positive in the unknown category with minor delinquencies balance were in the unknown category. Only 33 per- shown at the date of last report, the account had cent of these had been reported within six months of not been reported within six months of the date the the date the sample was drawn. One can infer that sample was drawn. Thus, their status had likely many, if not most, of these accounts had been closed changed, but because the information remained or transferred. Specifically, for more than one-half unchanged in the files, these accounts could disprothe mortgages in the unknown category, the credit portionately affect the assessment of current minor records showed that a new mortgage for approxi- delinquency. mately the same amount reported was opened within two months of the last reporting of the mortgage in Unknown category accounts last reported in major the unknown category—a strong indicator that the derogatory status. Unlike nonderogatory and minor mortgage in the unknown category was refinanced or derogatory accounts, the status of a major derogatory that the servicing was sold. account can remain unchanged for a long time. The Installment loans show a similar but less striking consumer may have stopped paying, and the creditor pattern. About one-fifth of the nonclosed, nonderoga- may have stopped trying to collect on the account. tory and minor derogatory installment accounts are in Thus, an account's status could in fact remain the the unknown category; 33 percent of these were last same and not require updating. The failure to update reported within six months of the date the sample was is reflected in the sample data. Fifty-nine percent of drawn. One can infer that many of the loans may the accounts last reported as unpaid (positive balnot have been outstanding when the sample was ance) major derogatories were in the unknown catedrawn. About 48 percent of nonderogatory and minor gory. Of these, more than one-quarter had not been derogatory installment accounts in the unknown updated for more than four years. category have one of two conditions—either they are Limited evidence shows that some of these beyond the original due date at the time the sample accounts were likely paid off but that the update was was drawn or the gap between the date the sample not reported to the credit reporting company. Specifiwas drawn and the last date they were reported is cally, for about 10 percent of the unknown category larger than any previous gap in their payment history. mortgages with major derogatories, another mortgage There is another indication that many of the non- was reported as originated after the date the account derogatory or minor derogatory mortgage and install- had last been reported. Generally, creditors require ment accounts in the unknown category may not have that all major derogatories be paid off before a new been outstanding when the sample was drawn. More mortgage is originated. Similarly, a mortgage was than one-half of the loans in the unknown category reported as originated after the date of last report for for each account type were reported by creditors about 3 percent of other unknown category accounts that had not reported on any accounts in the sam- with major derogatories. ple within three months of the time the sample was Further evidence shows that even if some major derogatories in the unknown category had been paid 24. The credit reporting company that supplied the data has indicated that it is in the process of implementing stale account procedures 25. Creditors had to have reported at least ten sample accounts to for these types of accounts. be included in this calculation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 65 off, the payoff may not have been reported. About these nonreported accounts is unknown. The failure 32 percent of the major derogatory accounts in the to report accounts in good standing may affect the unknown category were reported by creditors that credit evaluation of consumers with such accounts. had not reported on any accounts within three months For example, if consumers have low utilization of of the date the sample was drawn. If these creditors these nonreported accounts, the failure to report may are no longer active reporters, then even paid-off worsen their credit evaluation. For those consumers accounts are unlikely to be recorded as such. The having nonreported accounts with high utilization, account may still have existed, but it may have been however, the failure to report may actually improve transferred or sold and thus reported twice. In these credit evaluation. circumstances, if the consumer paid off the account, then only one of these duplicate records might be Account Characteristics updated as paid.26 Further, almost 12 percent of the major derogatory When conducting credit evaluations, creditors conaccounts in the unknown category were reported by sider a range of account-related characteristics, creditors that, in the sample, reported only derogatory including the types of credit accounts an individual accounts. Such reporting patterns are particularly has established, how long the individual has had a prevalent with nonrevolving accounts, for which the particular credit account, and the last time the credit figure is about 35 percent. These creditors may sim- account carried a balance. Evaluators also assess the ply not report when accounts are paid off or the extent to which consumers have made recent requests consumer starts making payments. Reporting only for new credit as measured by certain types of inquirmajor derogatory accounts has another implication ies made to a credit reporting company. for the completeness of credit files. Satisfactorily One such characteristic, the age of the account, performing accounts of the creditors that so report may be relevant to an evaluation of credit quality are not included in the files, and thus the extent of because, for example, the longer the account has been open, the more information it may convey through its payment history. New accounts may convey little 26. To test this conjecture, the percentage of all accounts that had information other than that the consumer had a very ever been reported as major derogatories and that were last reported satisfactory (paid off or making payments) were compared for two recent need for additional credit and was approved groups of creditors: (1) those that had not reported any accounts for credit. In this context, length of time since an within three months of the date the survey was drawn and (2) those account was opened is most pertinent with respect to that had reported. For each group, the examination was restricted to accounts that were opened in the same three-year period (1995 through active accounts and least pertinent for accounts that 1997). Creditors that were currently reporting accounts had an inci- have long been closed. Among active revolving dence rate showing satisfactory performance that was about 50 peraccounts, which represent three out of four active cent higher than the rate that creditors not currently reporting had. 9. All credit accounts, distributed by the number of years since the accounts were opened Percent All accounts Active accounts Type of account One 1-2 2-A More Total One 1-2 2-4 More Total or less than 4 or less than 4 Revolving 8.0 8.9 19.2 63.9 100.0 16.5 14.1 21.3 48.1 100.0 Check credit 5.7 7.1 16.5 70.6 100.0 13.1 12.6 21.6 52.7 100.0 Banking institution 9.0 9.5 20.9 60.6 100.0 17.9 14.3 22.6 45.2 100.0 Finance company or credit union 9.0 10.7 20.0 60.3 100.0 21.9 18.3 21.8 38.0 100.0 Retailer 6.5 7.9 16.4 69.2 100.0 13.5 13.1 18.5 54.9 100.0 Other1 11.4 10.1 26.4 52.1 100.0 21.7 15.5 30.7 32.2 100.0 Nonrevolving 6.0 8.4 17.5 68.1 100.0 10.9 10.8 15.7 62.6 100.0 Installment 8.6 10.5 21.0 60.0 100.0 29.4 24.3 27.7 18.7 100.0 Banking institution 7.3 9.3 19.2 64.2 100.0 30.5 25.8 29.0 14.7 100.0 Finance company or credit union 9.1 10.8 21.8 58.3 100.0 32.9 30.0 28.6 8.5 100.0 Retailer and other1 9.5 11.3 22.1 57.1 100.0 26.9 20.6 26.4 26.2 100.0 Mortgages 7.8 9.1 13.7 69.4 100.0 21.5 18.8 17.7 42.0 100.0 All accounts 8.1 9.3 19.3 63.4 100.0 18.6 15.9 21.9 43.6 100.0 1. "Other" includes national oil and gas companies, travel and entertainment companies, utility companies, real estate firms, government entities, and smaller retailers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 Federal Reserve Bulletin • February 2003 accounts, about 30 percent were two years old or less as of the date the sample was drawn, and 48 percent Non-Credit-Account Data were more than four years old (table 9). Mortgage Included in Credit Records accounts tended to be somewhat younger than revolving accounts, with about 40 percent two years old or Public Records less and 42 percent more than four years old. Install- Public records include information from public legal ment accounts were the youngest overall—about filings collected either directly by public institutions and 54 percent of these accounts were two years old or provided to the credit reporting companies or recorded by less—and nonrevolving the oldest, with 63 percent third parties from public records. Public records include more than four years old. information on foreclosures, civil judgments, or tax liens For closed and other accounts that were reported to reported for the consumer over the past seven years, and have a zero balance as of their last date of report, the bankruptcies filed during the previous ten years. Information on each judgment, lien, or bankruptcy includes the length of time since the account had a balance may following: be more pertinent, since to some degree this measure indicates the timeliness of information available from • Date of the public record the account's payment history. Among accounts last • Type of filing (tax lien, foreclosure, bankruptcy reported to have a zero balance, revolving and nonchapter) revolving accounts tended to be paid down to zero • Current status (filed, dismissed, paid, granted) more recently than installment accounts and mort- • Amount of the claim (or assets and liabilities for gages. For instance, 25 percent of revolving and bankruptcies) nonrevolving accounts with a zero balance last had a • Court docket number positive balance within a year of the date the sample • Name of the plaintiff. was drawn, compared with 11 percent of installment accounts and 16 percent of mortgages. About half of Collection Account Records installment and mortgage accounts with a zero bal- Collection account records consist of credit accounts and ance last had a positive balance no less than four records of unpaid bills, such as bills for utility services, years before the date the sample was drawn, com- that have been transferred to a collection agency or are pared with about one-third of revolving accounts. otherwise in the process of collection. Collection account records include the following information: 1 • Date that the item was turned over to the collection Public Records, Collections, and Inquiries HI gag agency Besides credit account information, information • Date that the account information was recorded by the derived from various public records, reports from credit reporting company • Account status (paid or unpaid) collection agencies, and creditor inquiries about a • Amount currently owed as of the verification date (not consumer's credit history is included in credit reportapplicable for paid accounts) ing company records (see box "Non-Credit-Account • Collection agency's subscriber code Data Included in Credit Records"). Credit evaluators • Name of the original creditor. consider these types of information in assessing the credit quality of individuals. However, issues of miss- Inquiry Records ing or ambiguous information complicate the use of Inquiry records consist of information about the conthese data. sumer requested by a creditor. Inquiry records are maintained for two years and include the following: Public records • Date of the inquiry • Type of credit being considered (missing for most !|| inquiries) The types of public information available from gov- • Inquiry requestor's subscriber code. ernment entities include records of bankruptcy filings, liens, judgments, and some foreclosures and lawsuits. The data regarding bankruptcy distinguish proceedings. Chapter 7 provides for liquidation bankbetween the types of personal bankruptcies. The two ruptcies, which involve the liquidation of all nonmain types of consumer bankruptcies are Chapter 7 exempt assets and the discharge of almost all debts. and Chapter 13, each named after the chapter in the Chapter 13 provides for so-called wage-earner plans U.S. bankruptcy code that defines the nature of the that involve the full or partial repayment of debts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 67 10. Public records, distributed by dollar amount of claim Percent MMeemmoo:: Distribution of public records, by amount of claim (dollars)1 TTyyppee ooff ppuubblliicc rreeccoorrdd DDiissttrriibbuuttiioonn bbyy rreeccoorrdd ttyyppee 0 1-250 251-500 501-1,000 1,001-5,000 5,001-10,000 10,001 or more Bankruptcy 22.7 Chapter 7 75.9 M < ' • • Chapter 13 23.7 Other .3 Foreclosure .9 19.1 1.5 0 .3 4.2 1.8 73.2 Lien 34.1 32.2 9.1 7.2 9.7 21.6 8.0 12.2 Federal government ... 28.3 20.0 .8 1.4 2.8 22.6 18.0 34.4 State government 65.9 36.3 12.5 9.5 12.5 21.3 4.2 3.7 Local government 5.3 48.6 10.1 8.3 10.3 19.9 1.8 1.0 Other2 .5 7.4 20.4 11.4 16.5 28.4 11.9 4.0 Judgment 39.7 15.8 12.2 13.6 17.1 32.3 5.9 3.1 Medical 18.4 18.5 16.8 19.4 19.4 21.7 2.9 1.3 Utility 3.1 17.6 17.9 16.4 22.3 22.4 2.2 1.2 Government 5.1 15.1 19.2 13.7 14.2 26.6 7.0 4.2 Collection agency 9.2 29.7 14.0 15.6 14.8 22.4 2.9 .6 Creditor2 18.9 11.3 4.7 5.3 10.8 46.9 14.8 6.1 Other3 45.4 13.8 12.0 14.0 19.3 33.8 2.9 .6 Lawsuit 2.6 24.3 9.8 9.5 13.5 28.4 9.0 5.4 Medical 17.7 30.1 15.2 11.8 16.5 19.6 4.7 2.0 Utility 4.5 26.6 8.8 23.0 21.2 19.5 .9 .0 Government 3.9 40.6 10.4 5.2 15.6 17.7 4.2 6.3 Collection agency 5.7 16.8 24.5 10.5 16.1 18.9 10.5 2.8 Creditor2 25.4 13.3 2.2 4.8 9.3 44.2 17.2 9.1 Other3 42.9 27.4 9.9 10.0 13.3 26.4 7.3 5.7 All public records4 76.4 23.4 10.7 10.6 13.7 27.4 7.0 7.2 1. Public records with reported amounts equal to zero have been paid or 3. Includes small retailers, law firms, individuals, educational institutions, dismissed. The original amounts involved in the public action are not included 4. Excludes bankruptcy and foreclosure. in the records. . . . Not applicable. 2. Includes large retailers, banking institutions, and finance companies. while assets are shielded from creditor action.27 The sample (table 10). Bankruptcies accounted for nearly data also distinguish (albeit imperfectly) between fed- all the remaining public records. Most of the bankeral, state, and local tax liens and other liens. Other- ruptcy records were associated with Chapter 7 filwise, unlike credit account data, the public record ings, which is the most common type of personal data do not provide a classification code for the type bankruptcy.28 of creditor or plaintiff (for example, a provider of Lawsuits and foreclosures accounted for small promedical services or a utility company). However, by portions of the public record actions included in examining the names of plaintiffs, one can distin- the data because credit reporting companies choose guish among broad types of judgments and lawsuits, to gather such information only in limited circumsuch as those related to unpaid bills for medical and stances. Underlying this decision for lawsuits is a utility services (again, imperfectly). Although public belief that the simple filing of a lawsuit, which prerecords include some details about the action, the cedes any decision on its merits, is of only limited information available is narrower in scope than that value, particularly for credit evaluation. Moreover, available on credit accounts. as shown below, the degree to which lawsuits are Overall, about 12 percent of the individuals in the reported is inconsistent. Credit reporting companies credit reporting company data had at least one public generally do not gather such information for forerecord item (percentage derived from table 1), and closures because most of them are believed to have almost 37 percent of the individuals with a public already been reported in conjunction with credit record item had more than one item noted. Judgments accounts; thus, collecting them from public records and liens, representing 40 percent and 34 percent would be redundant. of the public records respectively, were the two most The public records information was examined to common types of public record noted in the data determine the types of plaintiffs involved in these actions. Almost all the liens recorded in the data 27. Other bankruptcy chapters available to individuals, but rarely used by them, include Chapter 11 and Chapter 12. For more information on bankruptcy, see "Bankruptcy Basics," Administrative Office 28. Andrea Stowers and Mark Cole, "A Bankruptcy Wake-Up of the United States Courts, June 2000. Call," Mortgage Banking, vol. 57, no. 5 (February 1997), pp. 10-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 Federal Reserve Bulletin • February 2003 involved federal or state governmental entities; local To shed light on this issue, the authors developed governments and others accounted for only about some rules of thumb to estimate the extent to which 6 percent of the liens. For both judgments and law- multiple public record items are related. In the case suits, the most common types of plaintiffs were those of public records associated with medical bills, for in the "other" category (mostly smaller retailers and example, the authors considered all records that did law firms), followed by creditors (large retailers, not show a substantial gap between the dates of each banking institutions, and finance companies) and pro- record to be a single episode. In the case of bankruptviders of medical services. cies, if a record of an initial filing under Chapter 13 A large proportion of the public record items asso- was followed shortly thereafter by a filing under ciated with liens, judgments, and lawsuits showed Chapter 7, both records were considered a single relatively small balances owed (table 10). About one- episode. The actual incidence of unique episodes quarter of these three types of public record items in may be higher or lower than these estimates. the credit reporting company data showed no bal- Excluding liens, the number of unique episodes is ances owed, indicating that the legal action was either estimated to be about 90 percent of the total number paid in full or resolved in some other manner. About of public records, with little variation across the types 35 percent of the public records of these types of public records. For liens, the number of unique showed an amount owed of $1,000 or less; about episodes is estimated to be about two-thirds of the 7 percent involved actions seeking more than total number of public records of this type; but deter- $10,000. Unlike the other types of public records mining what is a unique incident is more difficult. For (excluding bankruptcies), foreclosures typically example, multiple liens filed at the same time by the showed large dollar amounts owed. While about one- same type of governmental entity may be liens for fifth of the foreclosures showed no balances currently the same tax year or pertain to different years. owed (the foreclosure action was either "satisfied" or Patterns in the public records in the sample suggest "dismissed"), nearly three-quarters involved bal- some inconsistency in reporting across plaintiffs and ances of $10,000 or more. geographic areas. For example, the inconsistent cap- In some cases, more than one public record item turing of lawsuits is reflected in the sample by the for an individual appears to be associated with a fact that three states (Maryland, New York, and Pennsingle episode. The reasons for several public record sylvania) accounted for two-thirds of all individuals items resulting from a single episode are various. with records of lawsuits. Inconsistencies can arise not Failure to pay a bill may cause both a lawsuit and only because of reporting practices but also because a judgment to appear in an individual's records. of the practices of specific plaintiffs. Some plaintiffs, Several public records related to unpaid medical for example, obtain separate judgments for individual bills may stem from the same injury or illness. An unpaid billed items, whereas other plaintiffs in simiappealed judgment or a refiling of a judgment in a lar circumstances may have combined the bills. different court may result in more than one record of a judgment. In addition, the records for an individual may show a state or local tax lien that has not been Collection agency accounts paid and a separate record of a paid tax lien of the same type, but these may or may not refer to the same Information on non-credit-related bills in collection, original lien. such as those for unpaid medical services, is reported To the extent that case identifiers (docket numbers) to credit reporting companies by collection agenare available, credit reporting companies use them to cies. In addition, collections on some credit-related update public record information. For example, if a accounts also are reported directly by collection agentax lien is reported paid with the same docket number cies. In the latter case, the information is grouped used for the original public record of the lien, the with the collection actions on non-credit-related bills original record will be updated by showing the status rather than with the credit account information. Overas paid rather than by adding a new lien item to the all, about 31 percent of the individuals with credit consumer's record. Consistent case identifiers are not reporting company records had at least one such always available, however; for example, new docket collection action reported by a collection agency numbers may be assigned when a judgment is (derived from table 1). For about 10 percent of the appealed. In such circumstances, two or more distinct individuals, the only record item in their credit reportrecords for the same episode may appear in the data. ing company file was a collection agency action. Determining whether distinct public record items per- Because collections are considered to be a type of tain to the same episode is difficult. major derogatory, they can have an important effect Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 69 11. Collection actions reported by collection agencies, grouped by type of collection and distributed by amount originally owed Percent Memo: Amount originally owed (dollars) on collection action SShhaarree ooff TTyyppee ooff ccoolllleeccttiioonn (dollars) ccoolllleeccttiioonnss 5,000 1-100 101-250 251-500 501-1,000 1,001-5,000 Total Mean Median or more All collections Medical 52.2 36.5 33.3 16.2 8.3 4.8 .9 100 386 142 Utility 22.7 24.7 34.2 23.6 12.3 5.1 .2 100 342 199 Government 2.3 29.3 33.9 15.9 13.8 6.2 1.0 100 466 199 Creditor1 5.8 19.6 18.4 10.9 11.2 30.4 9.4 100 1,699 587 Other2 16.9 45.7 24.9 11.9 8.6 8.1 .9 100 425 116 All collections 100.0 34.2 31.2 16.8 9.5 7.0 1.2 100 463 156 Paid-off collections Medical 54.5 13.3 11.5 10.2 9.5 7.3 5.2 11.5 n.a. n.a. Utility 22.7 14.6 13.0 9.1 5.5 3.7 4.2 11.1 n.a. n.a. Government 2.9 20.8 13.6 9.2 9.4 4.1 6.0 13.8 n.a. n.a. Creditor1 3.1 11.8 6.5 7.2 4.1 3.4 1.3 5.9 n.a. n.a. Other2 16.8 12.4 11.3 10.3 8.0 6.2 6.0 11.0 n.a. n.a. AH paid-off collections 100.0 13.4 11.7 9.8 7.7 5.4 3.5 11.1 n.a. 1. Includes large retailers, banking institutions, and finance companies. n.a. Not available. 2. Includes small retailers, law firms, individuals, educational institutions. on the consumer's ability to obtain credit or on the involved an amount $500 or less. Overall, the mean price of such credit. and median amounts originally owed were $463 and Unlike credit accounts, but like public records, $156, respectively. Credit-related actions in the colcollection actions are reported without a code indicat- lection records involved substantially larger amounts: ing the type of original creditor. The data, however, The mean and median amounts reported by collection do include information that can be used to infer the agencies for credit accounts equaled nearly $1,699 type of entity that originally sought the collection. By and $587, respectively. The data also show that only the authors' estimates, most collection actions about 11 percent of the reported collection items have reported by collection agencies do not involve credit been paid off (table 11, bottom panel), with collecaccounts; only about 6 percent are related to credit tions filed by a governmental entity the most likely accounts (table 11). The majority of collection actions and credit-related collections the least likely to have (about 52 percent) are associated with medical bills. been reported as fully paid. The high incidence of collections related to medical As with the public records, individuals sometimes bills is not surprising given both the large number of have more than one collection agency action reported. individual consumers and families that have partial or About 44 percent of the individuals with a collection no health insurance coverage and the high cost of agency record had more than one item noted. Like many medical services.29 The second largest category tracking public records, tracking collection agency involved collection actions for unpaid bills for utility accounts to update their status is not always possible services, which by the authors' analysis, account for because of changes in account numbers that someabout 23 percent of all collections. times result from transfers of the account across Most collection actions reported by collection collection agencies. Also, as noted for public records agencies showed small balances owed when origi- items, more than one collection agency action for nally reported to the credit reporting company. About an individual may stem from the same episode (for 34 percent of all the collections involved an origi- example, one medical incident involving several nal amount owed of $100 or less, and 82 percent component billings), and determining whether distinct record items pertain to the same episode is 29. According to the Federal Reserve's 2001 Survey of Consumer difficult. Some rules of thumb were used to iden- Finances, about 9 percent of households had no public or private tify the extent to which multiple collection agency health insurance coverage, and nearly 17 percent had only partial items were related. The estimated number of unique coverage, meaning that one or more members of the household had no coverage. These proportions are little changed from those found in the episodes is about 70 percent of the total number of 1998 Survey of Consumer Finances. collection agency records. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 Federal Reserve Bulletin • February 2003 As with public records, multiple collection actions DATA ISSUES AND POSSIBLE RESOLUTIONS associated with the same incident appear in a number of cases to result from the practice of a particular Credit reporting companies gather information to plaintiff's submitting separate collections for differ- develop a comprehensive and contemporaneous picent billed items. Since another plaintiff in similar ture of the ongoing and past credit relationships of circumstances might have combined the bills into a individuals, primarily to facilitate credit evaluation. single collection, inconsistencies can arise in the way Examination of a sample of this information reveals collection actions are counted across individual credit the breadth of the data contained in credit report files. records. Moreover, a small proportion of the collec- Each individual's credit record provides a detailed tion records appear to be due to a repeat filing of the snapshot of that person's current use and past experisame action with the credit reporting company. ences with credit, as well as information on public records and collection accounts. Credit records contain dozens of items, ranging from the type, source, Inquiries and amount of credit borrowed to the payment patterns associated with the repayment of such debt. Credit reporting company records include informa- Thus, the records enable one to construct diverse tion about inquiries made about a consumer's credit indicators of credit use and repayment performance, history. These inquiries are conducted to ensure that including measures of credit utilization, numbers of an applicant for credit, apartment rental, insurance, or recently opened accounts, and timing and severity of employment has a background that meets the mini- payment problems. The breadth and timeliness of the mum standard the inquirer has established for provid- data included in credit reporting company records ing the service. The data do not include inquiries hold the promise that such information may provide a made by creditors about existing accounts or inquir- new source of information for the Federal Reserve. ies made by consumers themselves. This finding is Available evidence indicates that these data and the consistent with the view that credit underwriters credit-scoring models derived from them have subfocus primarily on a consumer's recent efforts to stantially improved the overall quality of credit deciobtain credit. sions and have reduced the costs of such decision- Overall, about 58 percent of the individuals in making.30 Almost certainly, consumers would receive the credit reporting company sample had at least less credit and the price of the credit they received one inquiry noted in their files. The inquiries are would be higher, if not for the information provided often bunched in time. About 26 percent of the by credit reporting companies. Moreover, the credit inquiries were made within one week of another reporting system has become more comprehensive inquiry that appears in a given individual's credit over the past decade with notable improvements, file, and about 60 percent were made within one such as enhanced reporting of mortgage credit. month of another inquiry in the file. These figures are consistent with the view that consumers often engage multiple parties when seeking a service, such Issues with the Data as a loan or an apartment; for example, a consumer purchasing a car or home may approach more than Despite the benefits that the credit reporting system one creditor while shopping for the best avail- offers, analysis reveals several areas of the current able terms to finance the purchase. However, because system that could be improved. A close examination fewer than 2 percent of the records of inquiries of credit reporting company data reveals that the inincluded information about the purpose of the formation is not complete, may contain duplications, inquiry, it is impossible to determine with certainty and at times contains ambiguities about the credit if bunched inquiries represent shopping for a single loan purpose or requests for different loan products (for example, a mortgage and a credit account 30. For a recent analysis comparing the efficacy of underwriting to purchase household items). Nevertheless, credit decisions conducted judgmentally with the efficacy of decisions evaluators use various techniques to differentiate reviewed by automated underwriting systems that incorporate credit between these two circumstances. One technique, for reporting company data, see Susan Wharton Gates, Vanessa Gail Perry, and Peter M. Zorn, "Automated Underwriting in Mortgage example, is to use the type of creditor as a proxy for Lending: Good News for the Underserved?" Housing Policy Debate, the loan type and the timing of the inquiry to identify vol. 13, issue 2, 2002, pp. 369-91; and John M. Barron and Michael multiple inquiries arising from shopping for a single Staten, "The Value of Comprehensive Credit Reports: Lessons from the US. Experience," Credit Research Center, Georgetown Univerloan. sity, 2002. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 71 histories of at least some consumers. The following the credit reporting company records were supplied are four particular areas of concern: (1) credit limits by creditors that reported information only on credit are sometimes not reported; (2) the current status accounts that had experienced payment problems. of accounts that show positive balances but are not The evidence does not indicate that the accounts they currently reported is ambiguous; (3) some creditors did report were in error; however, the failure to report fail to report nonderogatory accounts or minor delin- accounts in good standing likely affected the credit quencies; and (4) the reporting of data on collection evaluation of consumers with such accounts. If conagency and public record accounts is possibly incon- sumers have low utilization of nonreported accounts, sistent and inquiry data is incomplete. the failure to report may worsen their credit evaluation. For consumers having nonreported accounts Missing credit limits. A key measure used in credit with high utilization, however, the failure to report evaluation—utilization—could not be correctly cal- may actually improve their credit evaluation. The culated for about one-third of the open revolving analysis further indicates that some creditors do not accounts in the sample because the creditor did report that an account is experiencing a minor delinnot report the credit limit. About 70 percent of quency. The credit histories for consumers with such the consumers in the sample had a missing credit accounts appear somewhat better than they actually limit on one or more of their revolving accounts. are. If a credit limit for a credit account is not reported, credit evaluators must either ignore utilization (at Inconsistent reporting of public records, collection least for accounts without limits) or use a substitute agency accounts, and inquiries. About 40 percent of measure such as the highest-balance level. The the individuals with public records have more than authors' evaluation suggests that substituting the one such record, and a similar percentage of those highest-balance level for the credit limit generally with accounts reported by collection agencies have results in a higher estimate of credit utilization and more than one collection item. For many of these probably a higher perceived level of credit risk for individuals, the multiple record items appear to peraffected consumers. tain to the same episode, such as one record filed when a collection action was initiated and a second Accounts not currently reported. About 8 percent of record filed when it was paid. Evidence indicates that all accounts in the sample showed positive balances some inconsistencies arise in the reporting of actions but were not currently reported. Moreover, of those across geographic areas or types of plaintiff. Moreaccounts reported as a major derogatory at the most- over, unlike the credit account data, no code identifies recent report, almost three-fifths were not currently the type of creditor or plaintiff. These limitations of reported. The authors' evaluation suggests that many the data could significantly affect credit evaluation of these accounts, particularly mortgages and install- because more than 50 percent of the records of major ment loans, are likely to have been either closed or derogatories in the credit files are collection agency transferred but were not reported as such. Many of reports or public records. these accounts were reported by creditors that were Multiple inquiries in a consumer's credit file can not reporting data to the credit reporting company arise either when the consumer shops among differwhen the sample was drawn, and thus information ent creditors for the same loan or when he or she on these accounts is unlikely to have been updated. applies for multiple loans. Credit evaluators would The significant fraction of not currently reported like to distinguish between these different ciraccounts that are likely closed or transferred implies cumstances because the latter may indicate financial that some consumers will show higher current distress, whereas the former would not. Although balances and a larger number of open accounts than the presence of a code for loan type in the credit they actually hold. Some of this overrepresentation file's inquiry records holds the promise of disis mitigated by credit evaluators' assumption that tinguishing between the circumstances, more freaccounts unreported over a long period are closed. quent reporting by creditors is required for these However, they may not make the assumption for codes to serve their purpose. Creditors failed to derogatory accounts, thus penalizing consumers who provide the code for 98 percent of the inquiry have paid off a delinquent account since it was last records in the data sample. In the absence of a reported. loan-type code, proxies, such as the type of creditor, would have to be used to distinguish between Failure to report nonderogatory accounts or minor shopping for a single loan and applying for multiple loans. delinquencies. Between 1 percent and 2 percent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Bulletin • February 2003 Consequences of Data Limitations How to Contact the National Credit The effect of these data limitations is twofold. First, Reporting Companies because credit-scoring models are built using these data, ambiguities, duplications, and omissions will The following is the contact information for the three affect the model's assessments of risk factors. For national credit reporting companies. example, if one cannot distinguish in the data between individuals who have a certain characteristic Equifax P.O. Box 740241 (say, an unpaid major derogatory) from those who Atlanta, GA 30374 appear to have that characteristic but actually do not (800) 685-1111 (order credit report) (such as those with an unreported payoff), then the (888) 766-0008 (fraud alert) model will incorrectly assign a risk factor to the http://www.equifax.com joint group that reflects their combined performance. Second, ambiguities, duplications, and omissions in Experian credit files can result in an incorrect evaluation of the P.O. Box 2002 credit risk of individual applicants. These two effects Allen, TX 75013 are intertwined: Correcting one part without the other (888) 397-3742 (order credit report, disputing credit will not fully solve the problem. For example, resolv- items, fraud alert, other questions) ing the problems in applicant files will not correct the http://www.experian.com models if the models were developed using problematic data. Trans Union Trans Union Consumer Relations Such limitations in credit reporting company P.O. Box 2000 records have the potential to both help and hurt Chester, PA 19022 individual consumers. On the one hand, consumers (800) 916-8800 with positive account information, such as the payoff To order a credit report: of a major derogatory, that creditors have not reported Trans Union LLC are hurt. On the other hand, consumers with negative Consumer Disclosure Center information that is unreported, such as an unpaid P.O. Box 1000 medical bill that does not go to collection or an Chester, PA 19022 unreported minor delinquency on a credit account, http://www.transunion.com are helped. Even consumers with no such problems in their files can be affected. For example, a consumer with an unpaid major derogatory that is cor- credit reports and use the dispute process established rectly reported will look the same as a consumer with in the FCRA to correct errors or omissions (see box a paid, but not updated, major derogatory. As a "How to Contact the National Credit Reporting Comconsequence, the former consumer will likely have a panies"). The FCRA generally provides that a consomewhat better credit evaluation, and the latter con- sumer who is denied credit must be given the reasons sumer a somewhat worse one, than he or she would if for denial and an opportunity to receive a copy of credit grantors (and the builders of the models they his or her credit report without charge. Similarly, use) were better able to distinguish between paid and consumers seeking new credit are routinely advised unpaid major derogatories. to check their credit reports before applying. In addi- Consumers who are hurt by ambiguities, duplica- tion, when credit is underwritten, a loan officer sometions, and omissions in their files have an incentive to times reviews the credit report information and thus correct them, but consumers who are helped by such may have an opportunity to see and correct data problems do not. The result of this difference may be problems. an asymmetric correcting of files. Such asymmetry The extent to which the concerns noted above are can lead to overall performance on loans that is likely to be addressed by individual consumers or somewhat worse than would be predicted by credit- loan officers checking credit reports is unclear. On scoring models. the one hand, an unreported credit account, credit limit, or inquiry loan-type code may not be identified as an issue of concern. Moreover, the credit granting Possible Remedies system has moved toward risk-based pricing in which A remedy for many of these issues is consumer applicants are less likely to be denied credit (and thus vigilance. Consumers can periodically review their given the reasons for denial) than to receive credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Overview of Consumer Data and Credit Reporting 73 at prices that reflect the perceived risk. Consumers In the interim, some steps might be considered to may not always be aware that they are paying higher mitigate or reduce the effect of the problems noted prices for the credit. Similarly, an increasing share above. Credit evaluators might develop models that of consumer revolving credit is obtained through identify individuals whose credit files are likely to pre-approved solicitations as opposed to consumer- contain data problems. Factors such as missing credit initiated requests for credit. On the other hand, both limits, not currently reported accounts, and duplicagrowing consumer awareness of the importance of tive collection accounts or public records may be credit reports and easier consumer access to credit good indicators of individuals whose credit scores are reports and credit scores serve to increase consumer potentially less predictive. Creditors might judgmenvigilance. tally review actions on applicants estimated to have a The credit reporting companies also could address high likelihood of significant error, particularly those some of the issues identified above. For example, whose credit scores place them in a range in which developing a plaintiff code system for collection the price or availability of credit is likely to be and public records would allow credit evaluators to affected. Such reviews, with the potential to gather differentiate among different types of these records more information from the consumer, may be able to in assessing credit risk. Similarly, expanding stale resolve problems in the credit evaluations for identiaccount rules and identifying accounts of creditors fied borrowers. that are no longer reporting information to the credit In reflecting on these data limitations and remreporting companies would assist credit evaluators in edies, several issues should be kept in mind. First, determining how much weight to give not currently although some problems in the credit reporting data reported accounts. that are likely to affect the credit evaluation of Most of the problems cited above result from the individuals have been identified, it is very difficult failure of creditors, collection agencies, or public to determine the extent to which credit availability entities to report or update items—areas that are would change if these problems were addressed. It is beyond the direct control of the credit reporting com- likely that data issues will materially affect the availpanies. Thus, fully resolving these problems requires ability and pricing of credit only for those individuals a more comprehensive and consistent reporting sys- of marginal creditworthiness. Second, the costs of tem, particularly with regard to major derogatories, correcting the identified data problems have not been collection agency accounts, and public records. Some evaluated. Some of the problems may be very diffichanges in this vein are happening already. For exam- cult and expensive to overcome, and in some cases ple, only about 13 percent of revolving accounts now the costs may exceed the benefits. Finally, this analybeing reported to the credit reporting company that sis rests on the experiences of only one of the three supplied the data are missing credit limits. This national credit reporting companies and uses data that reduction from the 33 percent incidence at the time are now somewhat dated. Many changes are taking the sample used for this evaluation was drawn (1999) place in the credit reporting industry, and they may occurred in part because of pressure on creditors by mitigate some or all of the highlighted limitations. • the credit reporting companies and others. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 Announcements RATES SET UNDER PRIMARY AND SECONDARY The asset-size exemption for depository institu- CREDIT PROGRAMS tions will remain at $32 million based on the annual percentage change in the Consumer Price Index for The Federal Reserve Board announced on January 6, Urban Wage Earners and Clerical Workers for the 2003, that it had approved requests by the twelve twelve-month period ending in November 2002. As a Federal Reserve Banks to establish primary and sec- result, depository institutions with assets of $32 milondary credit rates of 2lA percent and 23/4 percent, lion or less as of December 31, 2002, are exempt respectively, effective January 9, 2003. from data collection in 2003. An institution's exemp- These discount rates are the interest rates that tion from collecting data in 2003 does not affect depository institutions will be charged for credit its responsibility to report the data it was required to extended under the Federal Reserve's new primary collect in 2002. The adjustment is effective Januand secondary credit programs that the Board ary 1, 2003. approved on October 31, 2002. These programs The Home Mortgage Disclosure Act (HMDA) replace the adjustment and extended credit programs, requires most depository institutions and certain forwhich were discontinued as of January 9. profit, nondepository institutions to collect, report, The Federal Open Market Committee's current and disclose data about applications for, and originatarget of 1 lA percent for the federal funds rate was tions and purchases of, home mortgage loans, home not affected by this action. Thus, the establishment of improvement loans, and refinancings. Data reported the new discount rates did not represent a change in include the type, purpose, and amount of the loan; the stance of monetary policy, and the general level the race or national origin, sex, and income of the of market interest rates should not be affected. loan applicant; and the location of the property. The Primary credit will be available for very short purposes of HMDA include helping to determine terms as a backup source of liquidity to depository whether financial institutions are serving the housing institutions that are in generally sound financial con- needs of their communities and assisting in fair lenddition in the judgment of the lending Federal Reserve ing enforcement. Bank. Based on their current financial condition, most depository institutions will qualify for primary credit at the outset of the program. Secondary credit will be available in appropriate circumstances to PRELIMINARY FIGURES ON INCOME OF THE depository institutions that do not qualify for primary FEDERAL RESERVE BANKS credit. The seasonal credit program is unchanged. Reserve Banks will establish rates on primary, Preliminary figures released January 8, 2003, indicate secondary, and seasonal credit at least every two that the Federal Reserve Banks distributed approxiweeks, subject to review and determination by the mately $24,497 billion of their $26,758 billion total Board of Governors, through the same procedures income to the U.S. Treasury during 2002. that have been used in the past to set the rates on Federal Reserve System income is derived primaadjustment, extended, and seasonal credit. rily from interest earned on U.S. government securities that the Federal Reserve has acquired through open market operations. This income amounted to $25,532 billion. Additionally, revenues from fees for ANNUAL NOTICE OF THE ASSET-SIZE the provision of priced services to depository institu- EXEMPTION THRESHOLD tions totaled $914 million. The remaining income of $312 million includes earnings on foreign currencies, The Federal Reserve Board on December 24, 2002, earnings from loans, and other income. published its annual notice of the asset-size exemp- The operating expenses of the twelve Reserve tion threshold for depository institutions under Regu- Banks totaled $2,070 billion in 2002, including the lation C (Home Mortgage Disclosure). System's pension cost credit. In addition, the cost Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

75 of earnings credits granted to depository institutions Jersey Community Loan Fund, serves on the Compliance amounted to $156 million. Assessments against Committee of the New Jersey Banker's Association, and is a Trustee of St. Peter's College in Jersey City, New Jersey. Reserve Banks for Board expenditures totaled $202 million, and the cost of currency amounted to $430 million. Dan Dixon Net additions to income amounted to $2,149 bil- Washington, District of Columbia lion, resulting primarily from unrealized gains on Mr. Dixon is group senior vice president and director of government relations for World Savings Bank, FSB. Durassets denominated in foreign currencies revalued to ing his career at World, his responsibilities have included reflect current market exchange rates. mortgage loan origination and servicing, customer rela- Total net income for the Federal Reserve Banks tions, regulatory compliance, and community outreach. In amounted to $26,049 billion. Under the Board's pol- addition, Mr. Dixon serves on the Board of Neighborhood icy, each Reserve Bank's net income after the statu- Housing Services of America, Inc. (NHSA), a national nonprofit secondary mortgage market intermediary. For six tory dividend to member banks and the amount years, he was chairman of NHSA. At NHSA, he supported necessary to equate surplus to paid-in capital is transintroduction of a new loan product for low-income borferred to the U.S. Treasury. The statutory dividends to rowers with funding from the Federal Home Loan Bank member banks were $484 million. Affordable Housing Program. Mr. Dixon previously served on the board of East Bay Habitat for Humanity in Oakland, California. APPOINTMENTS OF NEW MEMBERS AND James Garner Baltimore, Maryland DESIGNATION OF THE CHAIR AND VICE CHAIR Mr. Garner is senior vice president and associate general OF THE CONSUMER ADVISORY COUNCIL counsel for Washington Mutual, Inc., an organization providing consumer banking, mortgage lending, commercial The Federal Reserve Board named ten new members banking, and consumer financial services. Mr. Garner leads to its Consumer Advisory Council for three-year a group of attorneys and manages the consumer finance company subsidiary's compliance department. He recently terms and designated a new chair and vice chair of participated in the development of Responsible Mortgage the council for 2003. Lending Principles for the organization and participates in The council advises the Board on the exercise of the company's Fair Lending Steering and the Public Policy its responsibilities under the Consumer Credit Protec- Issues Management committees. Mr. Garner also works tion Act and on other matters in the area of consumer on a pilot program to move subprime customers into the organization's prime lending segment and regularly meets financial services. The council meets three times a with consumer advocate groups to discuss predatory lendyear in Washington, D.C. ing and responsible lending practices. Mr. Garner chairs a Ronald Reiter was designated chair; his term runs subcommittee for the Law Committee of the American through December 2003. Mr. Reiter is supervising Financial Services Committee and is an officer and member of the Governing Committee of the Conference on deputy attorney general for the California Depart- Consumer Finance Law. ment of Justice. Agnes Bundy Scanlan was designated vice chair; her term on the council ends in December 2004. Charles Gatson Ms. Scanlan is managing director and chief compli- Kansas City, Missouri Mr. Gatson is vice president of Midtown Community ance officer for FleetBoston Financial. Development Corporation doing business as Community The ten new members are the following: Builders of Kansas City, an affiliate of Model Cities Health Corporation, an organization that provides innovative Susan Bredehoft social, health-care, and community economic development Cherry Hill, New Jersey services to the urban community. Mr. Gatson directs the Ms. Bredehoft is senior vice president for compliance risk corporation's community economic development efforts management for Commerce Bancorp. She has responsibil- that include a $100 million urban revitalization program in ity for developing and implementing the compliance- Kansas City's urban core. The program includes a healthrisk-management program for consumer protection and care facility, single- and multifamily housing and an disclosure regulations, privacy, fair lending, community 85,000-square-foot H&R Block customer service center in reinvestment, and anti-money-laundering regulations. a predominantly African American community. Mr. Gatson Previously, Ms. Bredehoft was senior vice president and is a member of many civic organizations, including the director of compliance for Summit Bancorp, where she Urban League of Greater Kansas City, the Urban Land managed the community reinvestment and compliance pro- Institute's Inner City Advisor Coordinating Committee, grams. She has spoken on community development, fair and Fannie Mae's Housing Impact Advisory Committee. lending, compliance, and audit topics. Ms. Bredehoft is the In 2002, he received the James A. Johnson Community chair of the Finance and Audit Committee for the New Fellows Award from the Fannie Mae Foundation. 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76 Federal Reserve Bulletin • February 2003 James King ment, national alliances, and national programs for Bank of Cincinnati, Ohio America since October 2002. Previously, he was vice presi- Mr. King is president and chief executive officer of dent and chief privacy officer of MasterCard International, the Community Redevelopment Group in Cincinnati. His and president and chief executive officer, MasterCard Cardresponsibilities include administering the day-to-day opera- holder Solutions, Inc. His responsibilities included overall tions of residential and commercial development and con- management of MasterCard Cardholder Solutions, Inc. and struction, marketing, and management for two community managing and implementing privacy policies, regulations, development corporations, the Avondale Redevelopment and compliance for MasterCard International domestically Corporation and the Walnut Hills Redevelopment Founda- and abroad. Mr. Robinson has also served as a congrestion. Mr. King is a member of several community organiza- sional adviser on banking issues, including the Community tions including the City of Cincinnati Economic Develop- Reinvestment Act, Equal Credit Opportunity Act, Home ment Task Force, the National Congress for Community Mortgage Disclosure Act, and Fair Housing Act, for a Economic Development, and the Neighborhood Develop- subcommittee of the U.S. House of Representatives Comment Corporations Association of Cincinnati. He is also mittee on Banking, Finance, and Urban Affairs. co-chair of Cincinnati CAN (Community Action Now) and a member of The Federal Home Loan Bank of Cincinnati Diane Thompson Advisory Council and the Cincinnati Park Board Master East St. Louis, Illinois Plan Advisory Committee. In 2001, Mr. King received the Ms. Thompson is a supervising attorney for the Housing James A. Johnson Community Fellows Award from the and Consumer Rights Unit at the Land of Lincoln Legal Fannie Mae Foundation. Assistance Foundation. She supervises consumer rights litigation and works with community organizations on Elsie Meeks affordable housing and community economic develop- Kyle, South Dakota ment. She also supervises comprehensive homeless advo- Ms. Meeks is the executive director of First Nations cacy and homeless prevention projects in one of the poor- Oweesta Corporation, a subsidiary corporation of First est and most economically depressed cities in the country. Nations Development Institute. The corporation focuses on She has expertise in the Truth-in-Lending and Home enhancing the capacity of Native American tribes and Ownership and Equity Protection Acts and is an expericommunities by providing technical assistance and training enced anti-predatory lending advocate and litigator in the for the development and expansion of Native American St. Louis area. Ms. Thompson is involved in several comcommunity development financial institutions. Previously, munity activities, including the Metropolitan St. Louis Ms. Meeks helped develop and was Executive Director of Equal Housing Opportunity Council and Project Kids, Inc. The Lakota Fund, which is a Native American community development financial institution on the Pine Ridge Indian Clint Walker Reservation in southwestern South Dakota, specializing in Wilmington, Delaware small business development and microenterprise devel- Mr. Walker is the general counsel and chief administrative opment. Ms. Meeks is a board member of the National officer of Juniper Financial Corporation, established in Community Capital Association and, in 1994, received 2000. Mr. Walker is part of the founding team of the credit the "South Dakota Minority Small Business Advocate of card bank, which is based on the concept of applying the the Year" award. She was appointed by Senate Majority best practices of a traditional credit card business with Leader Tom Daschle to serve as the first Native American the best aspects of electronic banking to create an innovaon the U.S. Commission on Civil Rights. tive and improved customer experience. His responsibilities include legal, compliance, regulatory, and legislative activities, the Community Reinvestment Act, and com- Mark Pinsky munity affairs. Prior to his position at Juniper, Mr. Walker Philadelphia, Pennsylvania was general counsel at both First USA Bank, N.A. and Mr. Pinsky is president and chief executive officer of the Citibank Maryland. He has extensive experience in both National Community Capital Association, a leading netthe credit card industry and emerging e-commerce finanwork of community development financial institutions cial applications. (CDFIs). He is responsible for the association's strategic direction and performance and has created new products including the Equity Equivalent Investment and the Virtual Council members whose terms continue through Learning Center. Mr. Pinsky is widely recognized as the 2003 are the following: voice of the CDFI industry and the leading advocate for a strong, performance-based CDFI Fund in the U.S. Depart- Anthony Abbate, president and chief executive officer, ment of the Treasury. He has published and lectured exten- Interchange Bank, Saddle Brook, New Jersey sively on CDFIs and the Community Reinvestment Act. In 2002, he provided the keynote address at the Third Manuel Casanova, Jr., executive vice president, Interna- Annual U.K. Community Development Finance Confer- tional Bank of Commerce, Brownsville, Texas ence in Scotland and spoke on "Lessons from the U.S. Constance K. Chamberlin, president and chief executive CDFI Industry." officer, Housing Opportunities Made Equal, Richmond, Virginia Benjamin Robinson Charlotte, North Carolina Earl Jarolimek, vice president/corporate compliance offi- Mr. Robinson has been senior vice president, strategy cer, Community First Bankshares, Fargo, North management executive, responsible for issues manage- Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 77 J. Patrick Liddy, director of compliance, Fifth Third standards or lack of qualifications to perform auditing Bancorp, Cincinnati, Ohio services would be considered good cause to remove, Oscar Marquis, attorney, Hunton and Williams, Park suspend, or bar an accountant or firm from provid- Ridge, Illinois ing services for such an insured institution. Also, Elizabeth Renuart, staff attorney, National Consumer Law under the proposed rules, an accountant or account- Center, Boston, Massachusetts ing firm may not perform audit services as prescribed under section 36 if the accountant or firm has been Council members whose terms continue through removed, suspended, or debarred by one of the agen- 2004 are the following: cies, or if the Public Company Accounting Oversight Board, the Securities and Exchange Commission, or Janie Barrera, president and chief executive officer, a state licensing authority takes certain disciplinary ACCION Texas, San Antonio, Texas actions against the accountant or firm. Ken P. Bordelon, chief executive officer, E Federal Credit The proposed rules are being issued by the Board Union, Baton Rouge, Louisiana of Governors of the Federal Reserve System, the Robin Coffey, vice president, Harris Trust and Savings Federal Deposit Insurance Corporation, the Office of Bank, Chicago, Illinois the Comptroller of the Currency, and the Office of Thomas FitzGibbon, senior vice president, MB Financial Thrift Supervision. Although they would amend each Bank, N.A., Chicago, Illinois agency's rules of practice separately, they would Larry Hawkins, president and chief executive officer, Unity have uniform application for each agency. National Bank, Houston, Texas Comments are due sixty days after publication in Ruhi Maker, senior attorney, Public Interest Law Office of the Federal Register. Rochester, Rochester, New York Patricia McCoy, professor of law, Department of Economics, Massachusetts Institute of Technology, Cambridge, Massachusetts INTERAGENCY GUIDANCE ON ISSUES RELATED Debra S. Reyes, president, Neighborhood Lending Part- TO LAPSE IN FEDERAL FLOOD INSURANCE ners, Inc., Tampa, Florida AUTHORITY Benson Roberts, vice president for policy, Local Initiatives Support Corporation, Washington, District of The Federal Reserve Board on December 23, 2002, Columbia announced the issuance of interagency guidance to Hubert Van Tol, co-director, Fairness in Rural Lending, assist borrowers and lenders in dealing with issues Sparta, Wisconsin that might arise during a lapse in federal flood insurance authority that would begin January 1, 2003. The Congress adjourned in November 2002 without extending the statutory authority to issue flood DISCIPLINARY ACTION RULES PROPOSED FOR insurance policies under the National Flood Insur- ACCOUNTANTS AND ACCOUNTING FIRMS ance Program (NFIP). As a result, the authority of the Federal Emergency Management Agency (FEMA) to The federal bank and thrift regulatory agencies on issue new flood insurance policies, issue increased December 17, 2002, invited public comment on pro- coverage on existing policies, and issue renewal poliposed rules governing their authority to take disci- cies expired on December 31, 2002. plinary actions against independent public accoun- The guidance provides that state member banks tants and accounting firms that perform audit and may make loans that are or will be secured by propattestation services required by section 36 of the erty located in a flood hazard area without flood Federal Deposit Insurance Act. insurance during the time the NFIP is not available. The proposed rules would establish procedures These banks will not be cited for violating federal under which the agencies could, for good cause, flood insurance regulations. However, the lapse in the remove, suspend, or bar an accountant or firm from availability of NFIP coverage does not relieve lendperforming audit and attestation services for insured ers of any other obligations under federal flood insurdepository institutions with assets of $500 million or ance law or of their responsibility to prudently manmore. They would permit immediate suspensions in age safety and soundness risks. limited circumstances. FEMA has indicated that it expects the new Con- Under the proposed rules, violations of law, certain gress to reauthorize the NFIP shortly after it connegligent conduct, reckless violations of professional venes on January 7, 2003, and that the reauthori- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Reserve Bulletin • February 2003 zation will likely be made retroactive to January 1, 3. Subprime Lending. A new section identifies subprime 2003. The federal financial institution regulatory lending as the extension of credit to borrowers who agencies will notify financial institutions of any con- exhibit characteristics indicating a significantly higher risk of default than traditional bank lending customgressional action to reauthorize the NFIR ers. The section discusses March 1, 1999, interagency subprime lending guidance that emphasizes that institutions engaged in subprime lending need to have strong risk-management practices and internal controls, as well RELEASE OF MINUTES OF DISCOUNT RATE as Board-approved policies and procedures, that appro- MEETINGS priately identify, measure, monitor, and control all associated risks. The various risks inherent in this type of The Federal Reserve Board on December 23, 2002, activity are identified. See SR letter 99-6. released the minutes of its discount rate meetings Supplemental interagency subprime lending guidance from October 7 to November 6, 2002. issued in January 2001 is also discussed, including supervisory expectations for the ALLL, regulatory capital, examination review of subprime activities, classification of risk, and documentation for re-aging, renew- PUBLICATION OF THE NOVEMBER 2002 UPDATE ing, or extending delinquent accounts. This guidance TO THE COMMERCIAL BANK EXAMINATION is directed primarily to those institutions that have subprime-lending programs that equal or exceed 25 per- MANUAL cent of tier 1 regulatory capital. Institutions are expected to recognize that the elevated levels of credit and other The November 2002 update to the Commercial Bank risks arising from these activities require more intensive Examination Manual, Supplement No. 17, has been risk management and, often, additional capital. Quespublished and is now available. The Manual com- tions and answers pertaining to the January 2001 guidprises the Federal Reserve System's regulatory, ance are provided. The examination objectives and procedures are also revised. See SR letter 01-4. supervisory, and examination guidance for state 4. Capital Adequacy. This revised section on the assessmember banks. The new supplement includes the ment of capital adequacy includes various rule changes following: and clarifying interpretations. a. The Board approved on March 27, 2002, a limited 1. Host State Loan-to-Deposit Ratios. The examination risk-based capital rule change, effective July 1, 2002. strategy and risk-focused examinations section is (See the Federal Reserve's joint press release of revised to discuss (a) Section 109 of the Riegle-Neal April 9, 2002, and its attachment.) The modification Interstate Banking and Branching Efficiency Act of lowered, from 100 percent to 20 percent, the risk 1994, which prohibits any bank from establishing or weight that is applied to certain securities claims on, acquiring a branch or branches outside of its home state or guaranteed by, a qualifying securities firm in the for the purpose of deposit production; and (b) an amend- United States and in other countries that are memment (approved by the Board and the Federal Finan- bers of the Organization for Economic Cooperation cial Institutions Examination Council (FFIEC), effec- and Development. tive October 1, 2002) that conforms the uniform rule b. Joint interagency interpretive guidance was issued (see Regulation H, section 208.7(b)(2)) to section 109. on September 5, 2002, discussing the appropriate Section 109 sets forth a process that is based on pub- applications of the November 29, 2001, joint final lished loan-to-deposit ratios that can be used to test ruling on the capital treatment of recourse obligacompliance with the statutory requirements. (See the tions, direct-credit substitutes, and residual inter- Board's June 24, 2002, announcement of the published ests in asset securitizations. The guidance addresses host-state loan-to-deposit ratios.) A noncompliant bank risk-based capital treatment pertaining to (1) split or is subject to sanctions. partially rated instruments, (2) nonqualification of 2. Allowance for Loan and Lease Losses (ALLL). A new corporate bonds or other securities for the ratingssection contains supervisory guidance on ALLL meth- based approach, (3) spread accounts that function as odologies and documentation practices. (See the July 2, credit-enhancing interest-only strips, (4) audits of 2001, FFIEC policy statement). An institution's board internal credit-risk rating systems, and (5) cleanup of directors is responsible for ensuring that controls are calls. See SR letter 02-16. in place to determine the appropriate level of the ALLL. c. The risk-based capital treatment of accrued interest The institution should maintain and support the ALLL receivables (AIR) related to credit card securitizawith documentation that is consistent with its stated tions, as discussed in a May 17, 2002, interagency policies and procedures, generally accepted accounting advisory. An AIR represents a subordinated retained principles (GAAP), and applicable supervisory guid- interest in the cash initially allocated to the invesance. The institution's ALLL methodology must be a tors' portion of a credit card securitization, meeting thorough, disciplined, and consistently applied process the definition of a "residual interest" and the capital that incorporates management's current judgment about requirements under the November 2001 rule amendthe credit quality of the loan portfolio. Examination ment, effective January 1, 2002. When accounting objectives and procedures are provided. See SR letter for the sale of credit card receivables, the gain or loss 01-17. on sale, the seller should include the AIR as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 79 subordinated retained interest. Based on GAAP, the trust and transfer-agency examinations have been intevalue of the AIR at the date of transfer must be grated with the safety-and-soundness examinations. adjusted based on its relative fair (market) value. See (See SR letter 01-5.) Supervisory risk profiles, risk SR letters 02-12 and 02-22. assessments, and supervisory plans are to reflect fidud. The tier 1 leverage measure of the capital adequacy ciary activities. (See SR letter 96-10.) The composite guidelines was revised for state member banks. Uniform Interagency Trust Rating System (UITRS) (see A revised rule, Regulation H (12 CFR 208, appen- SR letter 98-37) and transfer-agent ratings are discussed dix B), was approved by the Board on November 8, that reflect the overall condition of each bank's fidu- 2001 (effective January 1, 2002), and issued in a ciary function. The Federal Reserve's concerns about joint agency press release dated November 29, 2001. direct or indirect financial incentives for banks and trust The rule was revised for agreements involving institutions that place trust assets with particular mutual recourse, direct-credit substitutes, and residual inter- funds are also discussed. See SR letter 99-7. ests. Also included is another final rule revision for 8. Formal and Informal Corrective Actions. This revised nonfinancial equity investments, approved by the section discusses various statutory provisions regarding Board on January 7, 2002 (effective April 1, 2002). such actions, including actions that must be taken by the See the January 8, 2002, joint interagency press Federal Reserve. The discussion on prompt-correctiverelease and SR letter 02-4. action directives, including the potential assessment of 5. Asset Securitization. This revised section addresses the civil money penalties against a bank or company, or any following issues: of its institution-affiliated parties, for noncompliance is a. An interagency advisory issued May 23, 2002, on also revised. Included are the Federal Reserve's supercovenants in asset-securitization contracts that are visory concerns and guidance on the FDIC's regulalinked to supervisory thresholds or adverse supervi- tions on indemnification agreements and payments. See sory actions as triggers for early amortization events SR letter 02-17. or the transfer of servicing. Such covenants are con- 9. International—Country Risk and Transfer Risk. The sidered unsafe and unsound banking practices that former international-transfer-risk section is revised to undermine the objective of supervisory actions. A include the February 22, 2002, interagency supervisory bank's boards of directors and senior management and examination guidance on an effective country-risk are encouraged to amend, modify, or remove these management process. Country risk is the risk that ecotypes of covenants in existing transactions. Such nomic, social, or political conditions in a foreign councovenants could create or exacerbate any liquidity try might adversely affect an organization's financial and earnings problems for a bank, possibly leading condition, primarily through impaired credit quality or to a further deterioration in its financial condition. transfer risk. (Transfer risk is a subset of country risk.) See SR letter 02-14. The new guidance supplements and strengthens the b. Interagency guidance issued May 23, 2002, on existing guidance. Examiners' responsibilities are disimplicit recourse provided to asset securitizations. cussed for ensuring that a bank's management of its Implicit recourse occurs when a banking institution country risks are appropriately addressed during the provides post-sale credit support beyond its contrac- bank examination process. Revised examination objectual obligation to one or more of its securitizations. tives, procedures, and an internal-control questionnaire Implicit recourse is of supervisory concern because are included. See SR letter 02-5. it demonstrates that the securitizing institution is re-assuming risk associated with the securitized asset A more detailed summary of changes is included that the institution initially transferred to the marketwith the update package. The Manual and updates, place. Illustrative examples are provided and several supervisory actions are discussed that the Federal including pricing information, are available from Reserve may take upon a determination that an insti- Publications Fulfillment, Mail Stop 127, Board of tution has provided implicit recourse. See SR letter Governors of the Federal Reserve System, Wash- 02-15. ington, DC 20551 (or charge by facsimile: 202- 6. Parallel-Owned Banking Organizations. The Bank- 728-5886). The Manual is also available on the Related Organizations section includes a discussion of the April 23, 2002, joint-agency statement for parallel- Board's public web site at www.federalreserve.gov/ owned banking organizations. A parallel-owned bank- boarddocs/supmanual/. ing organization is created when at least one U.S. depository institution and one foreign bank are controlled, either directly or indirectly, by the same person or group of persons who are closely associated in ENFORCEMENT ACTION their business dealings or otherwise acting in concert. The statement discusses the risks of, and supervisory approach for, those organizations. The Federal Reserve Board on December 19, 2002, 7. Fiduciary Activities. A new section discusses the Fed- announced the execution of a Written Agreement eral Reserve's integration of its supervisory assessment by and among Metamora Bancorp, Inc., Metamora, of a bank's fiduciary activities into the overall safety - Ohio; The Metamora State Bank, Metamora, Ohio; and-soundness supervision process, focusing supervithe Federal Reserve Bank of Cleveland; and the Ohio sory resources on areas of greatest potential risk. The Federal Reserve's examination-frequency mandates for Division of Financial Institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 Federal Reserve Bulletin • February 2003 CHANGES IN BOARD STAFF Ownership and Equity Protection Acts. He joined the Board's Legal Division in 1984 as an attorney in the The Board of Governors has approved the following litigation and enforcement section and transferred to officer promotions and appointments in the Division the Division of Consumer and Community Affairs in of Consumer and Community Affairs: 1995. Mr. Michaels holds a bachelor of arts degree from the University of Pennsylvania and a law degree • The promotion of Sandra F. Braunstein to Senior from George Washington University. Associate Director Ms. Price is responsible for oversight of the divi- • The promotion of Maureen R English, Adri- sion's automation and administrative programs. She enne D. Hurt, and Irene Shawn McNulty to Associate joined the Board's Division of Information Resources Directors Management in 1983 and transferred to the Division • The appointment of James A. Michaels and of Consumer and Community Affairs in 1993 to Tonda E. Price as Assistant Directors. manage the information systems section. Ms. Price holds a bachelor of science degree in mathematics Mr. Michaels manages the financial services sec- from Norfolk State University and a master of busition of the division's regulations program, which ness administration from the New York Institute of administers consumer protection laws that include Technology. • the Truth in Lending, Consumer Leasing, and Home Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

81 Legal Developments ORDERS ISSUED UNDER BANK HOLDING Competitive Considerations COMPANY ACT Section 3 of the BHC Act prohibits the Board from approv- Orders Issued Under Section 3 of the Bank Holding ing any proposal that would result in a monopoly or would Company Act be in furtherance of any attempt to monopolize the business of banking in any relevant market. The BHC Act also Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., prohibits the Board from approving a proposed bank acqui- Rabobank Nederland sition that would substantially lessen competition in any Utrecht, The Netherlands relevant banking market unless the Board finds that the anticompetitive effects of the proposal clearly are out- Order Approving the Acquisition of a Bank Holding weighed in the public interest by the probable effect of the Company and Bank proposal in meeting the convenience and needs of the community to be served.3 Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., This proposal represents Rabobank's initial entry into Rabobank Nederland ("Rabobank"), a foreign banking retail banking in California. There is no evidence in this organization, has requested the Board's approval under case that the transaction would lessen competition or create section 3 of the Bank Holding Company Act (12 U.S.C. a monopoly in any relevant market. Based on this and all § 1842) ("BHC Act") to become a bank holding company the facts of record, the Board has determined that competiby acquiring all the voting shares of VIB Corp ("VIB"), tive factors are consistent with approval. and thereby indirectly acquiring its subsidiary bank, Valley Independent Bank ("Valley Bank"), both in El Centro, California. Convenience and Needs Considerations Notice of the proposal, affording interested persons an opportunity to submit comments, has been published In acting on a proposal under section 3 of the BHC Act, the (67 Federal Register 58,054 (2002)). The time for filing Board is required to consider the effects of the proposal on comments has expired, and the Board has considered the the convenience and needs of the communities to be served proposal and all comments received in light of the factors and take into account the records of the relevant depository set forth in section 3 of the BHC Act. institutions under the Community Reinvestment Act Rabobank, with total consolidated assets of $367 billion, ("CRA").4 The CRA requires the federal financial superis one of the largest banking organizations in The Nether- visory agencies to encourage financial institutions to help lands.1 Rabobank operates a branch in New York, an meet the credit needs of local communities in which they agency in Texas, and representative offices in California, operate, consistent with safe and sound operation, and Georgia, Illinois, and the District of Columbia. Rabobank requires the appropriate federal supervisory agency to take also engages through its subsidiaries in a broad range of into account an institution's record of meeting the credit permissible nonbanking activities in the United States. needs of its entire community, including low- and VIB, with total consolidated assets of $1.3 billion, is the moderate-income ("LMI") neighborhoods, in evaluating 29th largest commercial banking organization in Califor- bank expansion proposals. nia.2 Valley Bank, with total assets of $1.3 billion, controls Rabobank does not currently operate an insured deposideposits of $969 million in California, representing less tory institution in the United States that is subject to the than 1 percent of total deposits of insured depository CRA. Rabobank has represented that it will maintain and institutions in the state. The proposed transaction would be support Valley Bank's CRA program and that Rabobank's Rabobank's first acquisition of a bank in the United States. capacity to provide long-term funding will further enhance these programs. The Board has carefully considered the convenience and needs factor and the CRA performance records of the insured depository institutions involved in light of all the facts of record, including public comments 1. Asset and ranking data for Rabobank are as of June 30, 2002, and are based on the exchange rate then applicable. 2. Asset and deposit data for VIB and Valley Bank are as of September 30, 2002. Ranking data for VIB and Valley Bank are as of June 30, 2002. In this context, depository institutions include commer- 3. 12 U.S.C. § 1842(c)(1). cial banks, savings banks, and savings associations. 4. 12 U.S.C. §2901 et seq. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • February 2003 received regarding the proposal and Valley Bank's record Bank had strong lending levels and responded to comunder the CRA.5 munity credit needs, especially in lending to small businesses.8 Examiners reported that Valley Bank's lending A. CRA Performance Evaluations record during the period covered by the 2001 Evaluation (the "review period") demonstrated good penetration As provided in the CRA, the Board has evaluated the throughout its assessment area, including LMI geograconvenience and needs factor in light of examinations by phies.9 Valley Bank extended approximately $47.7 million the appropriate federal supervisors of the relevant insured in small loans to businesses and small farm loans during depository institutions. An institution's most recent CRA the review period, of which 90 percent by number and performance evaluation is a particularly important consid- 76 percent by dollar volume were in its assessment area.10 eration in the applications process because it represents In Imperial and Riverside Counties, approximately a detailed, on-site evaluation of the institution's overall 45.5 percent by number and 42.9 percent by dollar volume record of performance under the CRA by its appropriate of Valley Bank's small loans to businesses and small farm federal supervisor.6 loans were made in LMI census tracts. Examiners noted VIB's sole subsidiary bank, Valley Bank, received a that in both Imperial and Riverside Counties, the majority rating of "satisfactory" from the Federal Reserve Bank of of Valley Bank's business and farm loans was extended to San Francisco at its most recent CRA evaluation, as of businesses and farms with gross annual receipts of $1 mil- February 26, 2001 (the "2001 Evaluation").7 The Board lion or less. has carefully reviewed the 2001 Evaluation and has consid- Rabobank has represented that since the 2001 Evaluaered confidential supervisory information and other infor- tion, Valley Bank has originated an additional $34.5 milmation regarding the CRA performance and fair lending lion of small farm loans and $138.5 million of small loans record of Valley Bank since its last CRA performance to businesses, all in its assessment areas. In addition, the evaluation. Board analyzed 2000 and 2001 data for Valley Bank's In that evaluation, examiners noted no evidence of pro- small loans to businesses and loans to small businesses in hibited discrimination or other illegal credit practices at its assessment area and found that by number and dollar Valley Bank, KRS Bank, or Stockdale Bank and found no volume, in both minority and LMI census tracts, Valley substantive violations of fair lending laws. Examiners also Bank's lending exceeded that of lenders in the aggregate. reviewed the assessment areas delineated by Valley Bank The 2001 Evaluation noted Valley Bank's participation and did not report that these assessment areas were unrea- in flexible lending programs aimed at small businesses and sonable or reflected an arbitrary exclusion of LMI areas. LMI individuals who might not qualify for more traditional loan products. Valley Bank, as a Small Business Adminis- B. CRA Performance Record of VIB tration ("SBA") Preferred Lender, originated more than $10 million of SBA loan products during the review period. Valley Bank received a "high satisfactory" rating under In addition, Valley Bank originated more than $2 million in the lending test in the 2001 Evaluation. Valley Bank loans during the review period under the Department of focuses its lending on agricultural and commercial loans. Agriculture's Business & Industry Guarantee Loan Pro- The 2001 Evaluation noted that as of December 31, 2000, gram designed to aid businesses that improve rural econoapproximately two-thirds of Valley Bank's loan portfolio mies. Examiners also noted Valley Bank's participation in (over $362 million) was composed of commercial and a lending program for small businesses sponsored by the agricultural loans. The 2001 Evaluation stated that Valley California Southern Small Business Development Corporation that focuses on minority-owned, women-owned, and 5. A community group submitted comments opposing the proposal start-up small businesses in Valley Bank's assessment and expressing concerns about the record of VIB in meeting the area.11 Examiners noted that Valley Bank had extended convenience and needs of the communities it serves. In particular, the commenter criticized VIB's record of home mortgage and small business lending to LMI and minority borrowers. 8. In this context, "loans to small businesses" includes loans to 6. See Interagency Questions and Answers Regarding Community businesses with gross annual revenues of $1 million or less, and Reinvestment, 66 Federal Register 36,620 (2001). "small loans to businesses" includes loans of $1 million or less to 7. VIB acquired Bank of Stockdale, F.S.B., Bakersfield ("Stock- businesses. dale Bank"), in January 1999 and Kings River State Bank, Reedley 9. Valley Bank's assessment areas for the 2001 Evaluation included ("KRS Bank"), both in California, in January 2000. KRS Bank and Imperial, Riverside, and parts of San Diego Counties, all in California. Stockdale Bank were merged into Valley Bank in May 2001, and Examiners noted that Valley Bank has a very limited presence in continue to operate under their original names as divisions of Valley San Diego County. Approximately 98 percent of the small business Bank. The CRA programs of KRS Bank and Stockdale Bank have not and small farm loans Valley Bank made in its assessment areas during been evaluated for CRA purposes since their acquisition by VIB. The the review period were originated in Imperial and Riverside Counties. Board has carefully reviewed the most recent CRA performance 10. The review period for the 2001 Evaluation was January 1 evaluations of KRS Bank and Stockdale Bank. KRS Bank received a through December 31, 2000, for the lending test, while activity under rating of "satisfactory" from its primary federal supervisor, the Fed- the investment and service tests was reviewed from February 23 to eral Deposit Insurance Corporation ("FDIC"), at its most recent CRA December 31, 2000. evaluation as of February 10, 1998. Stockdale Bank received a rating 11. The commenter contended that VIB does not participate in any of "satisfactory" from its primary federal supervisory, the Office of home lending or lending for small businesses programs aimed at Thrift Supervision, at its most recent CRA evaluation as of Novem- minority borrowers. The Board notes that neither the BHC Act nor the ber 12, 1997. CRA require a bank to establish specific types of lending programs or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 83 approximately $2.5 million in community development vices to organizations that serve LMI individuals and small loans in its assessment areas. These loans benefited various businesses. Since then, according to Rabobank, Valley community organizations, including local school districts Bank has developed a Small Business Outreach Program in and affordable housing projects. Rabobank has represented coordination with the Coachella Valley Mexican American that since the 2001 Evaluation, Valley Bank has originated Chamber of Commerce. Through this program, Valley more than $60 million in community development loans, Bank provides certain business and development informaincluding loans to programs that provide affordable hous- tion in English and Spanish for small businesses in ecoing for agricultural workers and LMI individuals, health nomically disadvantaged areas. care projects, and schools serving low-income families in rural communities. Although Valley Bank is primarily an C. HMDA Data and Fair Lending Record agricultural and commercial lender, the bank also originated $1.8 million in home-equity loans during the review The Board also has carefully considered VIB's lending period under a loan program it designed to assist LMI record in light of comments on data reported under the homeowners in LMI geographies. Home Mortgage Disclosure Act, 12 U.S.C. §2801 et seq. Valley Bank received a "high satisfactory" rating for ("HMDA"), by its subsidiaries.14 As noted above, Valley investment activities in the 2001 Evaluation. Examiners Bank is primarily a commercial and agricultural lender and reported that Valley Bank's level of qualified investments these types of loans are not reported under HMDA. had increased more than 200 percent since its previ- In addition to its small business and small farm lending, ous CRA evaluation and noted that the bank's record of Valley Bank engages to some extent in HMDA-reportable qualified investments and grant activity demonstrated an home mortgage lending. HMDA data for 2000 and 2001 improved responsiveness to the credit needs and commu- indicate that the percentage of VIB's housing-related loans nity development initiatives of its assessment areas.12 The to Hispanic borrowers and in predominantly minority cen- 2001 Evaluation attributed the increase in Valley Bank's sus tracts lagged that of lenders in the aggregate in the qualified investments to the bank's proactive investment markets reviewed. The HMDA data for these loans also strategy. Examiners noted that Valley Bank's qualified indicate that a disparity exists between VIB's denial rates investments primarily benefited affordable housing pro- for Hispanic applicants and its denial rates for nonminority grams, local redevelopment organizations, school districts, applicants. These disparities generally were higher than the and youth programs. denial disparity ratios15 for lenders in the aggregate with Rabobank has represented that during 2001 and 2002, respect to the total HMDA-reportable loans in Valley Valley Bank continued to support the affordable housing Bank's assessment areas.16 needs of its communities and made more than $11.3 mil- Although the HMDA data reflect certain disparities, the lion in qualified investments in LMI housing programs in data do not indicate that VIB is excluding any segment of its assessment area. Rabobank has stated that it would the population or geographic areas on a prohibited basis. continue to seek out and support long-term qualified invest- The Board nevertheless is concerned when the record of an ments, including programs supporting affordable housing. institution indicates disparities in lending and believes that Valley Bank's retail banking and community develop- all banks are obligated to ensure that their lending practices ment services were also reviewed in the 2001 Evaluation. are based on criteria to ensure not only safe and sound Examiners reported that the bank's retail delivery systems lending, but also equal access to credit by creditworthy were generally accessible to most portions of its assess- applicants regardless of their race or income level. The ment area; more than half of Valley Bank's branches and Board recognizes, however, that HMDA data alone provide automated teller machines ("AT^ls") were in moderate- an incomplete measure of an institution's lending in its income communities. In addition, examiners reported that community because these data cover only a few categories Valley Bank maintained alternative delivery systems of housing-related lending. HMDA data, moreover, prothrough its 24-hour telephone banking line, informational vide only limited information about covered loans.17 website, and ATMs that offer services in English or HMDA data, therefore, have limitations that make them an Spanish.13 The 2001 Evaluation also noted Valley Bank's involve- 14. The commenter alleged that VIB's 2001 HMDA data indicated ment in providing numerous community development serthat VIB disproportionately excluded and denied Hispanic applicants for home mortgage loans. to provide specific types of credit. Rather, the CRA focuses the 15. The denial disparity ratio compares the denial rate for minority attention of the banking agencies on encouraging insured depository loan applicants with that for nonminority applicants. institutions to help serve the needs of LMI neighborhoods as well as 16. These disparities are reflected in the rates of loan applications, the credit needs of other areas in the community. As noted above, originations, and denials. Valley Bank engages primarily in commercial and agricultural lending 17. The data, for example, do not account for the possibility that an and does so throughout its community, including LMI areas. institution's outreach efforts may attract a larger proportion of margin- 12. The commenter expressed concern about the level of Valley ally qualified applicants than other institutions attract and do not Bank's qualified investment and grant activities and alleged that provide a basis for an independent assessment of whether an applicant programs supported by the bank do not address the needs of agricul- who was denied credit was, in fact, creditworthy. Credit history tural workers and LMI or minority individuals. problems and excessive debt levels relative to income (reasons most 13. In the commenter's view, Valley Bank provides inadequate frequently cited for a credit denial) are not available from HMDA Spanish-language lending and business services. data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • February 2003 inadequate basis, absent other information, for concluding supervisory factors. Rabobank's capital levels exceed the than an institution has not assisted adequately in meeting minimum levels that would be required under the Basel its community's credit needs or has engaged in illegal Capital Accord, and its capital levels are considered lending discrimination. equivalent to the capital levels that would be required of Because of the limitations of HMDA data, the Board has a U.S. banking organization. Rabobank will finance the considered these data carefully in light of other informa- acquisition of VIB with internally available funds and will tion, including examination reports that provide an on-site not incur any additional debt in connection with this transevaluation of compliance with fair lending laws by VIB's action. In assessing the financial and managerial strength current and former bank subsidiaries. As previously noted, of Rabobank, the Board has reviewed information proexaminers found no evidence of prohibited discrimination vided by Rabobank, confidential supervisory and examinaor other substantive violations of the fair lending laws at tion information, and publicly reported and other financial Valley Bank or its predecessors. Moreover, the Board has information. In addition, the Board has consulted with reviewed confidential supervisory information and other relevant supervisory authorities, including those in The information about Valley Bank's fair lending compliance Netherlands. Based on all the facts of record, the Board record since its most recent compliance examination. The concludes that the financial and managerial resources and Board has also considered the HMDA data in light of the future prospects of the organizations involved in the profact that Valley Bank has only limited involvement in posal are consistent with approval.19 housing-related lending and in light of Valley Bank's over- Section 3 of the BHC Act also provides that the Board all lending and community development lending activities, may not approve an application involving a foreign bankwhich show that Valley Bank significantly assists in help- ing organization unless it is "subject to comprehensive ing to meet the agricultural and small business credit needs supervision or regulation on a consolidated basis by the of its entire community. The Board believes that, viewed appropriate authorities in the bank's home country."20 The in light of the entire record, the HMDA data indicate home country supervisor of Rabobank is De Nederlandthat VIB's record of performance in helping to serve the sche Bank N.V. ("DNB"), which is responsible for the needs of its communities is consistent with approval of the supervision and regulation of Dutch financial institutions. proposal. In approving previous applications, the Board has determined that Rabobank and other Dutch banks are subject to D. Conclusion on Convenience and comprehensive consolidated supervision by the DNB.21 In Needs Considerations this case, the Board finds that DNB supervises Rabobank in substantially the same manner as it supervised other In reviewing the effects of the proposal on the convenience Dutch banks at the time of those previous determinations. and needs of the communities to be served, the Board has Based on this finding and all the facts of record, the Board carefully considered the entire record, all the information concludes that Rabobank continues to be subject to comprovided by the commenter and Rabobank, evaluations prehensive supervision on a consolidated basis by its home of the CRA performance of the subsidiary banks of VIB, country supervisor. and confidential supervisory information.18 Based on all In addition, section 3 of the BHC Act requires the Board the facts of record and for reasons discussed above, the to determine that a foreign bank has provided adequate Board concludes that considerations relating to the conve- assurances that it will make available to the Board such nience and needs factors including the CRA performance information on its operations and activities and those of its records of the relevant depository institutions, are consistent with approval. 19. The commenter alleged that VIB's senior management does not appear to include any minority individuals. The racial or ethnic composition of a bank holding company's management is outside the Financial, Managerial, and Supervisory Considerations limited statutory factors that the Board is authorized to consider when reviewing an application under the BHC Act. See Union Bank of The BHC Act requires the Board to consider the financial Switzerland, 84 Federal Reserve Bulletin 684 (1998); see also Westand managerial resources and future prospects of the com- ern Bancshares, Inc. v. Board of Governors, 480 F.2d 749 (10th Cir. 1973). panies and banks involved in a proposal and certain other 20. 12 U.S.C. § 1842(c)(3)(B). Under Regulation Y, the Board uses the standard enumerated in Regulation K to determine whether a for- 18. The commenter urged the Board to condition approval of this eign bank that has applied under section 3 of the BHC Act is subject proposal on Rabobank entering into a CRA commitment acceptable to to consolidated home country supervision. See 12 C.F.R. 225.13(a)(4). the commenter. The Board notes that the CRA requires the Board, in Regulation K provides that a foreign bank will be considered to be considering an acquisition proposal, to review carefully the actual subject to comprehensive supervision or regulation on a consolidated performance records of the relevant depository institutions in helping basis if the Board determines that the bank is supervised and regulated to meet the credit needs of the communities. Neither the CRA nor the in such a manner that its home country supervisor receives sufficient federal banking agencies' CRA regulations require depository institu- information on the worldwide operations of the bank, including its tions to make pledges concerning future performance under the CRA. relationship to affiliates, to assess the bank's overall financial condi- Future activities of Rabobank's subsidiary bank will be reviewed by tion and its compliance with laws and regulations. See 12 C.F.R. the appropriate federal supervisors in future CRA performance evalu- 211.24(c)(1). ations, and these CRA performance evaluations will be considered by 21. See Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., the Board in any subsequent applications by Rabobank to acquire a Rabobank Nederland, 80 Federal Reserve Bulletin 947 (1994). See, depository institution. also, ING Bank, 85 Federal Reserve Bulletin 448 (1999). 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Legal Developments 85 affiliates that the Board deems appropriate to determine and its affiliates subsequently interfere with the Board's and enforce compliance with the BHC Act.22 The Board ability to obtain information to determine and enforce has reviewed the restrictions on disclosure in relevant compliance by Rabobank or its affiliates with applicable jurisdictions in which Rabobank operates and has commu- federal statutes, the Board may require termination of nicated with appropriate government authorities concern- Rabobank's direct or indirect activities in the United States. ing access to information. In addition, Rabobank has com- All the commitments and conditions on which the Board mitted to make available to the Board such information on has relied in granting its approval, including the comthe operations of Rabobank and its affiliates that the Board mitments and conditions specifically described above, are deems necessary to determine and enforce compliance with conditions imposed in writing by the Board in connecthe BHC Act and other applicable federal law. Rabobank tion with its findings and decisions and, as such, may be also has committed to cooperate with the Board to obtain enforced in proceedings under applicable law. any waivers or exemptions that may be necessary to enable The acquisition of VIB may not be consummated before Rabobank and its affiliates to make such information avail- the fifteenth calendar day after the effective date of this able to the Board. In light of these commitments, the Board order, and the proposal may not be consummated later than concludes that Rabobank has provided adequate assurances three months after the effective date of this order unless of access to any appropriate information that the Board such period is extended for good cause by the Board or the may request. Based on these and all the other facts of Federal Reserve Bank of New York, acting pursuant to record, the Board concludes that the supervisory factors it delegated authority. is required to consider are consistent with approval. By order of the Board of Governors, effective December 12, 2002. Conclusion Voting for this action: Chairman Greenspan, Vice Chairman Fergu- Based on the foregoing and all the facts of record, the son, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn. Board has determined that the proposed transaction should be, and hereby is, approved.23 In reaching its conclusion, ROBERT DEV. FRIERSON Deputy Secretary of the Board the Board has considered all the facts of record that it is required to consider under the BHC Act and other applica- Illini Corporation ble statutes. Springfield, Illinois The Board's approval is specifically conditioned on compliance by Rabobank with all its commitments Order Denying the Acquisition of a Bank Holding made in connection with the application, and specifically Company Rabobank's commitments on access to information and on the Board's receiving access to information on the opera- Illini Corporation ("Illini"), a bank holding company tions or activities of Rabobank and any of its affiliates that within the meaning of the Bank Holding Company Act the Board determines to be appropriate to determine and ("BHC Act"), has requested the Board's approval under enforce compliance by Rabobank and its affiliates with section 3 of the BHC Act (12 U.S.C. § 1842) to acquire all applicable federal statutes. If any restrictions on access to the voting shares of Illinois Community Bancorp, Inc., information on the operations or activities of Rabobank ("Illinois Community"), and thereby acquire Illinois Community Bank ("ICB"), both in Effingham, Illinois. 22. See 12 U.S.C. § 1842(c)(3)(A). Notice of the proposal, affording interested persons an 23. The commenter requested that the Board hold a public hearing or meeting on the proposal. Section 3(b) of the BHC Act does not opportunity to submit comments, has been published require the Board to hold a public hearing on an application unless the (67 Federal Register 1,357 (2002)). The time for filing appropriate supervisory authority for the bank to be acquired makes a comments has expired, and the Board has considered the timely written recommendation of denial of the application. The proposal and all comments received in light of the factors Board has not received such a recommendation from the appropriate set forth in section 3 of the BHC Act. supervisory authority. Under its rules, the Board also may, in its discretion, hold a public Illini is the 123rd largest banking organization in Illihearing or meeting on an application to acquire a bank if a meeting nois, controlling deposits of $253 million, representing less or hearing is necessary or appropriate to clarify factual issues related than 1 percent of total deposits in depository institutions in to the application and to provide an opportunity for testimony. the state ("state deposits").1 Illinois Community is the 12 C.F.R. 225.16(e). The Board has considered carefully the commenter's request in light of all the facts of record. In the Board's view, 474th largest banking organization in Illinois, controlling commenters have had ample opportunity to submit their views, and deposits of $49.2 million, representing less than 1 percent the commenter has submitted written comments that have been consid- of state deposits. On consummation of the proposal, Illini ered carefully by the Board in acting on the proposal. The commentwould become the 100th largest banking organization in er's request fails to demonstrate why its written comments do not present its evidence adequately and fails to identify disputed issues of fact that are material to the Board's decision that would be clarified by a public meeting or hearing. For these reasons, and based on all the 1. State deposit and ranking data are as of June 30, 2002, and facts of record, the Board has determined that a public meeting or reflect acquisitions as of December 6,2002. In this context, depository hearing is not required or warranted in this case. Accordingly, the institutions include commercial banks, savings associations, and savrequest for a public meeting or hearing on the proposal is denied. ings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • February 2003 Illinois, controlling deposits of $302.1 million, represent- levels of the companies involved, the quality of assets and ing less than 1 percent of state deposits. the level of earnings of these companies, and other finan- In evaluating an application under section 3 of the BHC cial information. Based on this review, the Board con- Act, the Board is required to take into consideration the cludes that the proposal as currently structured does not financial and managerial resources and future prospects provide adequate assurances that Illini has or would have of Illini, Illinois Community, and their subsidiary banks.2 sufficient financial or managerial resources to effect this A review of the financial factors includes evaluation of the transaction in a safe and sound manner or would have current and pro forma capital positions and levels of the financial resources and flexibility to meet any unforeindebtedness of the companies and banks involved.3 The seen problems that might arise at the subsidiary banks of Board previously has stated that a bank holding company Illinois Community or Illini. Accordingly, the Board conmust serve as a source of financial and managerial strength cludes that financial resources and future prospects of Illini to its subsidiary banks.4 In assessing the financial and and Illinois Community and their subsidiary banks are managerial resources and future prospects of the two orga- not consistent with approval of the proposal as currently nizations and their subsidiary banks and the effect the structured. transaction may be reasonably expected to have on these The Board also has considered the other factors it is resources, the Board has evaluated examination and inspec- required to consider under the BHC Act. Illini and Illinois tion reports and other supervisory information and has Community do not compete directly in any banking marconsulted with the relevant banking supervisors, including ket, and based on all the facts of record, the Board conthe Federal Deposit Insurance Corporation ("FDIC") and cludes that consummation of the proposal is not likely to the Illinois Office of Banks and Real Estate ("OBRE"). result in a significantly adverse effect on competition or on The Board also has considered information submitted by the concentration of banking resources in any relevant Illini, including its plans to raise additional capital in the banking market. The Board also has considered the effects future, and public information about the financial resources of the proposal on the convenience and needs of the of the companies involved in this case. community to be served and has taken into account the In the past, the Board has indicated its concern over the records of the relevant depository institutions under the ability of an applicant to serve as a source of strength to a Community Reinvestment Act ("CRA").7 All depository bank it proposes to acquire when the applicant is experi- institutions involved in this proposal received satisfactory encing weakness in its existing loan portfolio.5 Illini's ratings at their most recent CRA performance evaluations consolidated nonperforming assets have increased since by the FDIC.8 Illini proposes to offer new deposit products 2000. Illini already has a substantial level of debt, which is to ICB's customers. The Board concludes that the competitive and convenience and needs factors are consistent with serviced primarily by earnings from its existing subsidiary approval of this proposal but that these factors, including banks. Although Illini would incur no additional debt in the additional products Illini would provide, do not outconnection with the proposed acquisition of Illinois Comweigh the adverse considerations discussed above. munity, Illini's existing levels of debt place substantial demands on the financial resources of its subsidiary banks For these reasons and based on all the facts of record, and have adversely affected Illini's consolidated earnings.6 the Board has determined that the proposal does not meet Moreover, the current level of Illini's capital on a consoli- the statutory requirements for approval under section 3 of dated basis is significantly below the level of similarly the BHC Act. Accordingly, it is the Board's judgment that situated banking organizations. approval of the application would not be in the public Importantly, since March 31, 2001, ICB has been subject interest and that the application should be, and hereby is, to a cease and desist order issued by the FDIC and the denied. OBRE that, among other things, requires the bank to By order of the Board of Governors, effective Decemincrease its tier one leverage capital ratio to at least 7 per- ber 23, 2002. cent. Although Illini has informed the Board of its plans to Voting for this action: Chairman Greenspan, Vice Chairman Ferguraise additional capital, the timing of the completion of this son, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn. plan is unclear, and it is uncertain whether the proposed amount of capital would be enough to meet the needs of JENNIFER J. JOHNSON both Illini and ICB. Secretary of the Board The Board has considered these and all the other facts of 7. 12 U.S.C. § 2901 et seq. record, including information about the capital and debt 8. The Interagency Questions and Answers Regarding Community Reinvestment provides that an institution's most recent CRA performance evaluation is an important consideration in the application 2. 12 U.S.C. § 1842(c)(2). process because it represents a detailed on-site evaluation of the 3. 12 C.F.R. 225.13(b)(1). institution's overall record of performance under the CRA by its 4. 12 C.F.R. 225.4(a)(1); Cherokee Bancorp, 77 Federal Reserve appropriate federal supervisor. 66 Federal Register 36,620 and 36,639 Bulletin 324 (1991). (2001). Illini's two subsidiary banks are Illini Bank, Springfield and 5. Id.\ Center Financial Corporation, 76 Federal Reserve Bulletin Farmers State Bank of Camp Point, Camp Point, both in Illinois. Illini 23 (1990). Bank received a "satisfactory" rating as of January 1999, and Farmers 6. In 2001, Illini issued trust preferred shares and repurchased State Bank of Camp Point received a "satisfactory" rating, as of shares from its largest shareholder group, which it financed by bank February 1999. ICB received a "satisfactory" rating, as of October debt and unsecured notes payable to the shareholders. 1998. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 87 ORDERS ISSUED UNDER BANK MERGER ACT banking resources in any banking market, and that competitive factors are consistent with approval. Bank of Hawaii Honolulu, Hawaii Financial and Managerial Resources and Future Prospects Order Approving Merger of Banks and Establishment of The Bank Merger Act requires the Board to consider the Branches financial and managerial resources and future prospects of the institutions involved in this proposal. The Board has Bank of Hawaii ("Bank"), a state member bank,1 has reviewed these factors in light of all the facts of record, applied under section 18(c) of the Federal Deposit Insur- including supervisory reports of examination assessing the ance Act (12 U.S.C. § 1828(c)) ("Bank Merger Act") to financial and managerial resources of Bank and FSLA, and merge with First Savings and Loan Association of information provided by Bank. Based on these and all the America, Dededo, Guam ("FSLA"), a federal savings and facts of record, the Board concludes that the financial and loan association, with Bank as the surviving institution. managerial resources and future prospects of the institu- Bank has also applied under section 9 of the Federal tions involved are consistent with approval of the proposal. Reserve Act (12 U.S.C. §321) ("FRA") to establish branches at the former locations of FSLA.2 Convenience and Needs Considerations Notice of the proposal, affording interested persons an opportunity to submit comments, has been given in accor- The Bank Merger Act requires the Board to consider the dance with the Bank Merger Act and the Board's Rules of convenience and needs of the communities to be served. Procedure (12 C.F.R. 262.3(b)). As required by the Bank The Board has carefully reviewed the effect of the proposal Merger Act, reports on the competitive effects of the on the convenience and needs of the communities to be merger were requested from the United States Attorney served in light of all the facts of record, including the General and the other federal banking agencies. The time records of performance of the relevant depository institufor filing comments has expired, and the Board has consid- tions under the Community Reinvestment Act ("CRA").5 ered the applications and all the facts of record in light of The Board notes that Bank and FSLA received "outstandthe factors set forth in the Bank Merger Act and section 9 ing" and "satisfactory" ratings respectively at their most of the FRA. recent CRA performance examinations.6 Based on all the facts of record, the Board concludes that considerations Competitive Considerations relating to the convenience and needs factor, including the CRA performance records of the institutions involved, are The Bank Merger Act prohibits the Board from approving consistent with approval of the proposal. an application if the proposal would result in a monopoly or would be in furtherance of any attempt to monopolize Establishment of Branches the business of banking.3 The Bank Merger Act also prohibits the Board from approving a proposal that would Bank has also applied under section 9 of the FRA to substantially lessen competition or tend to create a mo- establish branches at the former locations of FSLA. Guam nopoly in any relevant market, unless the Board finds that law on intrastate branching provides that an out-of-state the anticompetitive effects of the proposed transaction are bank with an existing branch in Guam may not establish clearly outweighed in the public interest by the probable additional branches in Guam until the bank engages in an effects of the transaction in meeting the convenience and interstate merger transaction with a Guam-chartered bank. needs of the communities to be served.4 The Board has reviewed the proposal by Bank to operate The proposed merger of Bank and FSLA is a consolida- branches at the current FSLA offices in light of this Guam tion of two insured depository institutions under common law and applicable federal law. Because Bank already ownership and, therefore, would not lessen competition in lawfully operates a branch in Guam, the establishment of any relevant banking market. The Board has received no additional branches in Guam is governed by section 24 of objections to the proposal from the Department of Justice the Federal Deposit Insurance Act ("FDI Act").7 That or the other federal banking agencies. Accordingly, the section provides that a host State's intrastate branching Board concludes that consummation of the proposed trans- laws apply to a branch in the host State of the out-of-State, action would not be likely to result in a significantly State-chartered bank to the same extent that those laws adverse effect on competition or on the concentration of apply to a branch of an out-of-State national bank. Section 36(c)(2) of the National Bank Act permits an out-ofstate national bank with a branch in Guam to establish 1. Bank and FSLA are wholly owned subsidiaries of Bank of Hawaii Corporation, also in Honolulu, which is a bank holding 5. 12 U.S.C. §2901 et seq. company within the meaning of the Bank Holding Company Act, 6. Bank received an "outstanding" CRA rating from the Federal 12 U.S.C. § 1842. Deposit Insurance Corporation, as of January 19, 2000, and FSLA 2. FSLA has offices at the locations in the attached appendix. received a "satisfactory" CRA rating from the Office of Thrift Super- 3. 12 U.S.C. § 1828(c)(5)(A). vision, as of July 2, 2001. 4. 12 U.S.C. § 1828(c)(5)(B). 7. 12 U.S.C. §1831a(j)(l). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • February 2003 additional branches in Guam to the same extent as a bank The merger may not be consummated before the fifchartered in Guam. Accordingly, under section 24 of the teenth calendar day after the effective date of this order, or FDI Act, an out-of-State State bank with an existing branch later than three months after the effective date of this order, in Guam may also establish additional branches in Guam. unless such period is extended for good cause by the Board The Guam Superior Court has found that this provision of or by the Federal Reserve Bank of San Francisco, acting federal law overrides the Guam intrastate branching statute pursuant to delegated authority. in a situation almost identical to the facts of this case.8 By order of the Board of Governors, effective Decem- The Guam Banking Board has found that Bank meets ber 12, 2002. the requirements for establishing additional branches in Guam and has approved this proposal.9 In light of the Voting for this action: Chairman Greenspan, Vice Chairman Ferguspecific federal statute governing branching under the facts son, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn. of this case and the determination by the Guam Banking Board to approve this proposal, the Board finds that Bank ROBERT DEV. FRIERSON may establish and operate additional branches at the loca- Deputy Secretary of the Board tions of FSLA's offices notwithstanding section 106601(c) of Guam's banking statutes.10 The Board also has considered the factors it is required Appendix to consider under section 9 of the FRA. For the reasons discussed in this order, the Board finds those factors to be FSLA Offices to be Acquired by Bank of Hawaii consistent with approval.11 1. 136 Kay en Chando Street Dededo, Guam 96921 Conclusion 2. 140 Aspinal Street Hagatna, Guam 96910 Based on the foregoing and all the facts of record, the 3. 118 Agana Shopping Center Board has determined that these applications should be, Hagatna, Guam 96910 and hereby are, approved. Approval of the applications is 4. 1088 West Marine Drive specifically conditioned on Bank's compliance with all the Hagatna, Guam 96910 representations and commitments made in connection with 5. 291 Farenholt Avenue this proposal and on its receipt of all required regulatory Tamuning, Guam 96911 approvals. For purposes of this action, the representations 6. 525 Chalen Ramon Haya and commitments relied on in reaching this decision are Yigo, Guam 96929 conditions imposed in writing by the Board and, as such, may be enforced in proceedings under applicable law. 8. See Bank of Guam v. Guam Banking Board, Civil No. SP0234-01 (Guam Sup. Ct. April 24, 2002); accord Nat'l R.R. Passenger Corp. v. Miller, 358 F. Supp. 1321 (D. Kan. 1973), aff'd, 414 U.S. 948 (1973). 9. On September 19, 2002, the Guam Banking Board approved Bank's application to establish additional branches in Guam as a result of this proposal. 10. See 11 G.C.A. § 106601(c). 11. See 12 U.S.C. §322. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 89 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 4 Applicant(s) Bank(s) Effective Date Wells Fargo & Company, Montgomery Asset Management, LLC, December 23,2002 San Francisco, California San Francisco, California Wells Fargo Funds Management, LLC, San Francisco, California Wells Capital Management Incorporated, Los Angeles, California By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Applicant(s) Bank(s) Reserve Bank Effective Date Ambanc Financial Services, Inc., Central Lakes Bancorporation, Inc., Chicago December 13, 2002 Beaver Dam, Wisconsin Necedah, Wisconsin Necedah Bank, Necedah, Wisconsin Bridge Street Financial, Inc., Oswego County National Bank, New York December 31, 2002 Oswego, New York Oswego, New York CenterState Banks of Florida, Inc., CenterState Bank of Florida, Atlanta December 9, 2002 Winter Haven, Florida Winter Haven, Florida Central Missouri Shares, Inc., Central Shares, Inc., St. Louis December 16, 2002 Lebanon, Missouri Lebanon, Missouri Central Bank, Lebanon, Missouri Commerce Bancorp, The Bancorp Inc., Philadelphia December 31, 2002 Cherry Hill, New Jersey Wilmington, Delaware Community Financial Corporation, Community Bank Owatonna, Minneapolis December 6, 2002 Owatonna, Minnesota Owatonna, Minnesota FBOP Corporation, PNB Financial Corp., Chicago December 27, 2002 Oak Park, Illinois Chicago, Illinois Park National Bank and Trust of Chicago, Chicago, Illinois First Bancorp, Carolina Community Bancshares, Inc. Richmond December 17, 2002 Troy, North Carolina Latta, South Carolina First Federal Financial Corporation First Federal Savings Bank St. Louis December 24, 2002 of Kentucky, of Elizabethtown, Inc., Elizabethtown, Kentucky Elizabethtown, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • February 2003 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date First Interstate Bancsystem, Inc., Silver Run Bancorporation, Inc., Minneapolis December 11, 2002 Billings, Montana Red Lodge, Montana United States National Bank of Red Lodge, Red Lodge, Montana First State Associates, Inc., Hawarden Banking Company, Chicago December 4, 2002 Hawarden, Iowa Hawarden, Iowa Old O'Brien Banc Shares, Inc. Sutherland, Iowa First State Bancorp, First State Bank of California, San Francisco December 20, 2002 Granada Hills, California Granada Hills, California Harrodsburg First Financial Independence Bancorp, St. Louis December 6, 2002 Bancorp, Inc., New Albany, Indiana Harrodsburg, Kentucky Independence Bank, New Albany, Indiana Herky Hawk Financial Corp., Munter Agency, Inc., Chicago December 20, 2002 Monticello, Iowa Strawberry Point, Iowa Union Bank & Trust Company, Strawberry Point, Iowa Independent Holdings, Inc., Independent Bank, St. Louis December 17, 2002 Memphis, Tennessee Memphis, Tennessee Liberty Financial Group, Inc., Liberty Bank, San Francisco December 9, 2002 Eugene, Oregon Eugene, Oregon Maedgen & White, Ltd., Independent Financial, Inc., Dallas December 11, 2002 Dallas, Texas Lubbock, Texas Plains Capital Corporation, Whisperwood National Bank, Dallas, Texas Lubbock, Texas Marshfield Investment Company Marshfield Investment Company, St. Louis December 13, 2002 Employee Stock Ownership Plan Springfield, Missouri and Trust, Metropolitan National Bank, Springfield, Missouri Springfield, Missouri First National Bank, Lamar, Missouri Bank of Kimberling City, Kimberling City, Missouri Mercantile Bancorp, Inc., New Frontier Bancshares, Inc., St. Louis December 13, 2002 Quincy, Illinois St. Charles, Missouri Neighbors Bancshares, Inc., Neighbors Bank, Atlanta December 18, 2002 Roswell, Georgia Roswell, Georgia New CCB, Inc., CCB Financial Corporation, San Francisco December 26, 2002 Sandy, Oregon Sandy, Oregon Clackamas County Bank, Sandy, Oregon New West Banks of Colorado, Inc., New West Bank, Kansas City December 30, 2002 Greeley, Colorado Greeley, Colorado Pinnacle S-Corp, Inc., Pinnacle Bank, Atlanta December 6, 2002 Elberton, Georgia Elberton, Georgia Prairieland Bancorp Employee Stock Prairieland Bancorp, Inc., Chicago December 20, 2002 Ownership Plan and Trust, Bushnell, Illinois Bushnell, Illinois Farmers and Merchants State Bank, Bushnell, Illinois Reynolds, Teague, Thurman First National Bank of Moody, Dallas December 4, 2002 Financial Corp., Moody, Texas Moody, Texas RTT Delaware Holdings Inc., Wilmington, Delaware Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 91 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Synovus Financial Corp., FNB Bankshares, Inc., Atlanta December 20, 2002 Columbus, Georgia Covington, Georgia First Nation Bank, Covington, Georgia Tate Interim, Inc., Tate Financial Corporation, St. Louis December 16, 2002 Senatobia, Mississippi Senatobia, Mississippi Senatobia Bank, Senatobia, Mississippi TCB S-Corp, Inc., Countybank, Richmond December 9, 2002 Greenwood, South Carolina Greenwood, South Carolina Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date BB&T Corporation, Equitable Bank, Richmond December 26, 2002 Winston-Salem, North Carolina Wheaton, Maryland Boston Private Financial Coldstream Holdings, Inc., Boston December 16, 2002 Holdings, Inc., Bellevue, Washington Boston, Massachusetts Coldstream Capital Management, Inc. Bellevue, Washington Coldstream Securities, Inc., Bellevue, Washington Castle Creek Capital Partners Union Acceptance Corporation, San Francisco December 24, 2002 Fund Ha, LP, Indianapolis, Indiana Rancho Santa Fe, California Castle Creek Capital Partners Fund lib, LP Rancho Santa Fe, California Eagle Investment Company, Inc., To engage de novo in extending loans Minneapolis December 12, 2002 Glenwood, Minnesota Eggemeyer Advisory Corp., Union Acceptance Corporation, San Francisco December 24, 2002 Rancho Santa Fe, California Indianapolis, Indiana WJR Corp., Castle Creek Capital Partners Rancho Santa Fe, California Fund lib, LP, Castle Creek Capital LLC, Rancho Santa Fe, California Rancho Santa Fe, California Castle Creek Capital Partners Fund I, LP, Rancho Santa Fe, California Minnwest Corporation, Minnwest Investment and Insurance Minneapolis December 17, 2002 Minnetonka, Minnesota Center, Inc., Montevideo, Minnesota MountainBank Financial Corporation, Trustco Holding, Inc., Richmond December 24, 2002 Hendersonville, North Carolina Greenville, South Carolina State Bankshares, Inc., State Bank of Moorehead, Minneapolis November 27, 2002 Fargo, North Dakota Moorehead, Minnesota Northern Capital Holding Company, Fargo, North Dakota Vision Bancshares, Inc., Vision Bank, FSB, Atlanta December 30, 2002 Gulf Shores, Alabama Panama City, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • February 2003 APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date First Interstate Bank, United States National Bank Minneapolis December 26, 2002 Billings, Montana of Red Lodge, Red Lodge, Montana PNG Financial Bank, Whisperwood National Bank, Dallas December 11, 2002 Lubbock, Texas Lubbock, Texas M&I Marshall & Ilsley Bank, Southwest Bank of Arizona, Chicago December 12, 2002 Milwaukee, Wisconsin Phoenix, Arizona PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the on constitutional grounds the failure to pay interest on Federal Reserve Banks in which the Board of Governors is reserve accounts held at Federal Reserve Banks. not named a party. Artis v. Greenspan, No. 01-CV-0400 (EGS) (D.D.C., complaint filed February 22, 2001). Employment discrimina- Albrecht v. Board of Governors, No. 02-5325 (D.C. Cir., tion action. On August 15, 2001, the district court confiled October 18, 2002). Appeal of district court order solidated the action with Artis v. Greenspan, No. 99-CVdismissing challenge to the method of funding of the 2073 (EGS) (D.D.C., filed August 3, 1999), also an retirement plan for certain Board employees. employment discrimination action. Caesar v. United States, No. 02-0612 (EGS) (D.D.C.), Fraternal Order of Police v. Board of Governors, removed on April 1, 2002 from No. 02-1502 (D.C. No. 1:98CV03116 (WBB)(D.D.C., filed December 22, Superior Court, originally filed March 1, 2002). Action 1998). Declaratory judgment action challenging Board seeking damages for personal injury. labor practices. Community Bank & Trust v. United States, No. 01-571C (Ct. Fed. Cl„ filed October 3, 2001). Action challenging Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABLES Federal Finance A25 Federal debt subject to statutory limitation DOMESTIC FINANCIAL STATISTICS A25 Gross public debt of U.S. Treasury— Types and ownership Money Stock and Bank Credit A26 U.S. government securities A4 Reserves and money stock measures dealers—Transactions A5 Reserves of depository institutions and Reserve Bank A27 U.S. government securities dealers— credit Positions and financing A6 Reserves and borrowings—Depository A28 Federal and federally sponsored credit institutions agencies—Debt outstanding Policy Instruments Securities Markets and Corporate Finance A7 Federal Reserve Bank interest rates A29 New security issues—Tax-exempt state and local A8 Reserve requirements of depository institutions governments and corporations A9 Federal Reserve open market transactions A30 Open-end investment companies—Net sales and assets Federal Reserve Banks A30 Domestic finance companies—Assets and liabilities A31 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loan and security holding Real Estate Monetary and Credit Aggregates A3 2 Mortgage markets—New homes A3 3 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base Consumer Credit A13 Money stock measures A34 Total outstanding Commercial Banking Institutions— A34 Terms Assets and Liabilities Flow of Funds A15 All commercial banks in the United States A16 Domestically chartered commercial banks A35 Funds raised in U.S. credit markets All Large domestically chartered commercial banks A37 Summary of financial transactions A19 Small domestically chartered commercial banks A3 8 Summary of credit market debt outstanding A20 Foreign-related institutions A39 Summary of financial assets and liabilities Financial Markets DOMESTIC NONFINANCIAL STATISTICS A22 Commercial paper outstanding A22 Prime rate charged by banks on short-term Selected Measures business loans A23 Interest rates—Money and capital markets A40 Output, capacity, and capacity utilization A24 Stock market—Selected statistics A42 Industrial production—Indexes and gross value Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

51 Federal Reserve Bulletin • February 2003 INTERNATIONAL STATISTICS Securities Holdings and Transactions A54 Foreign transactions in securities Summary Statistics A55 Marketable U.S. Treasury bonds and A44 U.S. international transactions notes—Foreign transactions A45 U.S. reserve assets A45 Foreign official assets held at Federal Reserve Interest and Exchange Rates Banks A56 Foreign exchange rates A46 Selected U.S. liabilities to foreign official institutions A57 GUIDE TO SPECIAL TABLES AND STATISTICAL RELEASES Reported by Banks in the United States A46 Liabilities to, and claims on, foreigners SPECIAL TABLES A47 Liabilities to foreigners A49 Banks' own claims on foreigners A58 Assets and liabilities of commercial banks, A50 Banks' own and domestic customers' claims on September 30, 2002 foreigners A60 Terms of lending at commercial banks, A50 Banks' own claims on unaffiliated foreigners November 2002 A51 Claims on foreign countries—Combined A66 Assets and liabilities of U.S. branches and domestic offices and foreign branches agencies of foreign banks, September 30, 2002 Reported by Nonbanking Business A76 INDEX TO STATISTICAL TABLES Enterprises in the United States A52 Liabilities to unaffiliated foreigners A53 Claims on unaffiliated foreigners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tables SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GDP Gross domestic product n.a. Not available GNMA Government National Mortgage Association n.e.c. Not elsewhere classified GSE Government-sponsored enterprise P Preliminary HUD Department of Housing and Urban r Revised (Notation appears in column heading Development when about half the figures in the column have IMF International Monetary Fund been revised from the most recently published IOs Interest only, stripped, mortgage-backed securities table.) IPCs Individuals, partnerships, and corporations * Amount insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is in millions) MSA Metropolitan statistical area 0 Calculated to be zero NAICS North American Industry Classification System Cell not applicable NOW Negotiable order of withdrawal ABS Asset-backed security OCDs Other checkable deposits ATS Automatic transfer service OPEC Organization of Petroleum Exporting Countries BIF Bank insurance fund OTS Office of Thrift Supervision CD Certificate of deposit PMI Private mortgage insurance CMO Collateralized mortgage obligation POs Principal only, stripped, mortgage-backed securities CRA Community Reinvestment Act of 1977 REIT Real estate investment trust FAMC Federal Agriculture Mortgage Corporation REMICs Real estate mortgage investment conduits FFB Federal Financing Bank RHS Rural Housing Service FHA Federal Housing Administration RP Repurchase agreement FHLBB Federal Home Loan Bank Board RTC Resolution Trust Corporation FHLMC Federal Home Loan Mortgage Corporation SCO Securitized credit obligation FmHA Farmers Home Administration SDR Special drawing right FNMA Federal National Mortgage Association SIC Standard Industrial Classification FSA Farm Service Agency TIIS Treasury inflation-indexed securities FSLIC Federal Savings and Loan Insurance Corporation VA Department of Veterans Affairs G-7 Group of Seven GENERAL INFORMATION In many of the tables, components do not sum to totals because of include not fully guaranteed issues) as well as direct obligarounding. tions of the U.S. Treasury. Minus signs are used to indicate (1) a decrease, (2) a negative "State and local government" also includes municipalities, figure, or (3) an outflow. special districts, and other political subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • February 2003 1.10 RESERVES AND MONEY STOCK MEASURES Percent annual rate of change, seasonally adjusted1 2001 2002 2002 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Ql' Q2' Q3' July' Aug.' Sept.' Oct.' Nov. Reserves of depository institutions2 1 Total -31.2 -9.7 -15.9 -.9 11.2 11.3 -23.3 -10.9 19.9 2 Required 22.1 -9.2 -14.9 -3.6 7.2 3.5 -19.3 -13.7 18.6 3 Nonborrowed -21.4 -9.3 -16.5 -2.4 9.7 7.1 -20.4 -8.3 15.9 4 Monetary base3 6.4 9.1 8.1 7.2 8.4 4.3 .8 3.7 4.6 Concepts of money4 5 Ml 2.1 5.9 -.6 2.4 7.3 -14.2 8.1 8.5 1.1 6 M2 9.5 5.4 3.3 10.3 12.7 9.5 5.3 10.2 9.8 7 M3 12.2 4.6 3.1 8.5 8.5 10.8 5.1 3.1 19.7 Nontransaction components 8 In M25 11.5 5.3 4.4 12.4 14.2 16.0 4.5 10.7 12.1 9 In M3 only6 18.3 3.1 2.8 4.8 -.5 13.6 4.7 -12.2 41.6 Time and savings deposits Commercial banks 10 Savings, including MMDAs 22.6r 18.9 13.3 21.3 17.3 32.9 17.5 20.2 22.5 11 Small time7 -13. r -17.0 -4.9 -6.3 -8.6 -9.3 -13.9 -12.3 -9.0 12 Large time8-' -9.3 4.7 12.3 4.8 7.0 .2 .7 11.7 -20.8 Thrift institutions 13 Savings, including MMDAs 29.4' 29.5 22.1 21.6 23.3 25.8 22.2 29.1 16.6 14 Small time7 -9.3r -13.2 -15.3 -11.6 -8.5 -8.5 -10.9 -9.5 -6.4 15 Large time8 3.CF 1.0 -8.2 -2.1 2.2 14.0 6.4 10.6 10.5 Money market mutual funds 16 Retail 7.9 -11.0 -10.5 9.0 24.0 -.2 -17.2 -1.6 5.4 17 Institution-only 49.5 -.3 2.9 .1 -4.6 -1.5 -14.3 -36.2 80.9 Repurchase agreements and eurodollars 18 Repurchase agreements10 .7 9.6 -5.9 25.8 -1.6 81.4 59.1 -5.2 60.6 19 Eurodollars10 -7.9' 6.4 -6.4 -2.2 -1.2 23.5 23.1 15.7 19.5 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- time deposits, and retail money fund balances, each seasonally adjusted separately, and ing during preceding month or quarter. adding this result to seasonally adjusted M1. 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regula- M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) tory changes in reserve requirements (See also table 1.20.) balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom component of the money stock, plus (3) (for all quarterly reporters on the "Report of and Canada. Excludes amounts held by depository institutions, the U.S. government, money Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference by summing large time deposits, institutional money fund balances, RP liabilities, and between current vault cash and the amount applied to satisfy current reserve requirements. eurodollars, each seasonally adjusted separately, and adding this result to seasonally adjusted 4. Composition of the money stock measures is as follows: M2. Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all money fund balances, each seasonally adjusted separately. commercial banks other than those owed to depository institutions, the U.S. government, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities foreign banks and official institutions, less cash items in the process of collection and Federal (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of term) of U.S. addressees, each seasonally adjusted separately. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 7. Small time deposits—including retail RPs—are those issued in amounts of less than credit union share draft accounts, and demand deposits at thrift institutions. Seasonally $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions adjusted Ml is computed by summing currency, travelers checks, demand deposits, and are subtracted from small time deposits. OCDs, each seasonally adjusted separately. 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time booked at international banking facilities. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 9. Large time deposits at commercial banks less those held by money market funds, money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh depository institutions, the U.S. government, and foreign banks and official institutions. balances at depository institutions and money market funds. 10. Includes both overnight and term. Seasonally adjusted M2 is calculated by summing savings deposits, small-denomination Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1 Millions of dollars Average of Average of daily figures for week ending on date indicated daily figures 2002 2002 Sept. Oct. Nov. Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 659,221 659,702 666,517 661,669 657,682 662,436 660,565 666,349 666,072 669,023 U.S. government securities2 2 Bought outright—System account3 604,667 609,157 608,689 609,633 610,273 608,693 608,652 608,480 608,053 609,235 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 10 10 10 10 10 10 10 10 10 10 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreeements—triparty4 16,617 11,242 19,308 12,536 8,143 14,071 12,036 16,821 20,929 23,036 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 14 13 213 5 4 3 355 242 310 3 9 Seasonal credit 168 120 61 124 116 98 67 66 60 54 10 Special Liquidity Facility credit 0 0 0 0 0 0 0 0 0 0 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float -262 363 104 658 366 211 36 649 -310 15 13 Other Federal Reserve assets 38,008 38,797 38,133 38,703 38,771 39,350 39,408 40,081 37,020 36,671 14 Gold stock 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 15 Special drawing rights certificate account .... 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 16 Treasury currency outstanding 34,282 34,349 34,410 34,343 34,357 34,371 34,385 34,399 34,413 34,427 ABSORBING RESERVE FUNDS 17 Currency in circulation 661,583 662,719 668,223 664,412 662,855 662,102 663,948 668,072 667,798 669,912 18 Reverse repurchase agreements—triparty4 . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 367 389 387 384 399 400 395 386 387 384 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,838 4,873 5,024 4,327 5,064 4,799 5,338 5,013 4,868 5,016 21 Foreign 101 164 118 77 341 157 116 77 147 125 22 Service-related balances and adjustments . . 10,178 10,266 10,483 10,299 10,297 10,183 10,423 10,328 10,460 10,625 23 Other 221 223 228 216 212 205 245 236 250 180 24 Other Federal Reserve liabilities and capital .. 19,399 19,530 19,765 19,535 19,391 19,651 19,855 20,012 19,791 19,483 25 Reserve balances with Federal Reserve Banks5 9,056 9,128 9,943 10,005 6,723 12,552 7,870 9,867 10,026 10,968 End-of-month figures Wednesday figures Sept. Oct. Nov. Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 664,726 662,905 674,241 667,216 657,136 669,906 659,359 673,934 662,991 676,116 U.S. government securities2 2 Bought outright—System account3 604,191 607,865 608,985 610,360 610,231 608,665 608,770 608,984 606,396 609,614 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 10 10 10 10 10 10 10 10 10 10 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreeements—triparty4 21,750 16,500 28,500 13,750 7,500 20,500 10,000 21,000 19,250 29,000 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 1 0 2 30 4 4 7 2 1 6 9 Seasonal credit 176 80 57 129 103 85 62 65 56 54 10 Special Liquidity Facility credit 0 0 0 0 0 0 0 0 0 0 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 396 -695 -334 4,273 221 1.004 881 3,624 752 599 13 Other Federal Reserve assets 38,202 39,144 37,022 38,664 39,067 39,639 39,629 40,249 36,527 36,833 14 Gold stock 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 15 Special drawing rights certificate account .... 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 16 Treasury currency outstanding 34,315 34,385 34,441 34,343 34,357 34,371 34,385 34,399 34,413 34,427 ABSORBING RESERVE FUNDS 17 Currency in circulation 660,082 663,370 673,822 665,022 663,303 664,065 666,239 669,436 668,854 674,291 18 Reverse repurchase agreements—triparty4 .. . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 380 397 377 399 400 397 386 387 386 377 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 7,879 5,878 4,928 4,592 5,713 5,388 4,807 4,592 4,519 5,082 21 Foreign 150 89 78 75 128 238 72 76 72 224 22 Service-related balances and adjustments .. 10,170 10,423 10,685 10,299 10,297 10,183 10,423 10,328 10,460 10,625 23 Other 221 233 253 215 205 206 243 238 231 184 24 Other Federal Reserve liabilities and capital .. 19,719 19,720 19,616 19,283 19,372 19,581 19,571 19,693 19,307 19,435 25 Reserve balances with Federal Reserve Banks5 13,682 10,422 12,166 14,916 5,316 17,461 5,245 16,825 6,819 13,566 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float, under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • February 2003 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1999 2000 2001 2002 Dec. Dec. Dec. May' June' July' Aug.' Sept.' Oct.' Nov. 1 Reserve balances with Reserve Banks2 5,262 7,022 9,053' 9,188 7,923 8,099 8,520 8,731 8,836 9,696 2 Total vault cash3 60,620 45,245 43,919' 41,819 41,655 42,718 42,892 42,231 42,933 42,143 3 Applied vault cash4 36,392 31,451 32,024 31,104 30,694 31,313 31,335 30,176 29,849 29,446 4 Surplus vault cash5 24,228 13,794 11,895' 10,716 10,961 11,406 11,557 12,055 13,084 12,697 5 Total reserves6 41,654 38,473 41,077 40,292 38,617 39,412 39,854 38,907 38,685 39,142 6 Required reserves 40,357 37,046 39,428' 39,030 37,378 38,038 38,217 37,431 37,134 37,525 7 Excess reserve balances at Reserve Banks7 1,297 1,427 1,649' 1,261 1,238 1,374 1,637 1,476 1,550 1,616 8 Total borrowing at Reserve Banks 320 210 67 112 142 191 333 229 143 272 9 Adjustment 179 99 34 7 6 16 148 60 23 211 10 Seasonal 67 111 33 105 136 176 185 169 120 60 11 Special Liquidity Facility8 74 0 12 Extended credit® 0 0 0 0 0 0 0 0 0 0 Biweekly averages of daily figures for two-week periods ending on dates indicated 2002 Aug. 7' Aug. 21 Sept. 4' Sept. 18' Oct. 2' Oct. 16 Oct. 30' Nov. 13' Nov. 27 Dec. 11 1 Reserve balances with Reserve Banks2 8,022 7,694' 10,024 7,666 9,543 7,935 9,634 8,864 10,497 9,562 2 Total vault cash3 43,479 43,499' 41,632 41,581 43,190 43,452' 42,464 41,719 42,604 41,826 3 Applied vault cash4 32,212 31,351 30,698 28,528 31,925 28,939' 30,573 28,302 30,514 29,423 4 Surplus vault cash5 11,267 12,148' 10,935 13,053 11,265 14,513' 11,891 13,417 12,091 12,403 5 Total reserves6 40,233 39,045' 40,722 36,194 41,468 36,874' 40,207 37,166 41,010 38,985 6 Required reserves 38,917 37,712 38,436 35,225 39,670 35,337 38,688 35,492 39,441 37,398 7 Excess reserve balances at Reserve Banks7 1,316 1,333' 2,286 969 1,797 1,537 1,519 1,674 1,569 1.586 8 Total borrowing at Reserve Banks 194 195 626 167 170 155 111 366 214 133 9 Adjustment 14 9 438 4 1 25 4 299 157 83 10 Seasonal 180 186 188 163 170 130 107 67 57 50 11 Special Liquidity Facility8 12 Extended credit® 0 0 0 0 0 ' 0 ' ' 0 ' ' 0 ' ' 0 ' 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float and 7. Total reserves (line 5) less required reserves (line 6). includes other off-balance-sheet "as-of' adjustments. 8. Borrowing at the discount window under the terms and conditions established for the 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by Century Date Change Special Liquidity Facility in effect from October 1, 1999, through those banks and thrift institutions that are not exempt from reserve requirements. Dates refer April 7, 2000. to the maintenance periods in which the vault cash can be used to satisfy reserve require- 9. Consists of borrowing at the discount window under the terms and conditions estabments. lished for the extended credit program to help depository institutions deal with sustained 4. All vault cash held during the lagged computation period by "bound" institutions (that liquidity pressures. Because there is not the same need to repay such borrowing promptly as is, those whose required reserves exceed their vault cash) plus the amount of vault cash with traditional short-term adjustment credit, the money market effect of extended credit is applied during the maintenance period by "nonbound" institutions (that is, those whose vault similar to that of nonborrowed reserves. cash exceeds their required reserves) to satisfy current reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Primary credit1 Secondary credit2 Seasonal credit3 Federal Reserve Bank 1/1 O 0 n / 03 1/1 O 0 n / 03 1/1 O 0 n / 03 Effective date Boston 1/9/03 2.75 1/9/03 n/a New York . . . Philadelphia . Cleveland .. . Richmond . . . Atlanta Chicago St. Louis Minneapolis . Kansas City . Dallas San Francisco 2.75 1/9/03 Range of rates for primary credit Range (or F.R. Bank Range(or F.R. Bank Range (or F.R. Bank Effective date level)—All of Effective date level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Jan. 9, 2003 2.25 2.25 (beginning of program) Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range(or F.R. Bank Range (or F.R. Bank level)—All of level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1995 5.25 5.25 2000—Feb. 2 5.00-5.25 5.25 2001—June 27 3.25-3.50 3.25 4 5.25 5.25 29 3.25 3.25 1996—Jan. 31 5.00-5.25 5.00 Mar. 21 5.25-5.50 5.50 Aug. 21 3.00-3.25 3.00 Feb. 3 .. . 5.00 5.00 23 5.50 5.50 23 3.00 3.00 May 16 5.50-6.00 5.50 Sept. 17 2.50-3.00 2.50 1998—Oct. 15 . .. 4.75-5.00 4.75 19 6.00 6.00 18 2.50 2.50 16 . .. 4.75 4.75 Oct. 2 2.00-2.50 2.00 Nov. 17 . . . 4.50-4.75 4.50 2001—Jan. 3 5.75-6.00 5.75 4 2.00 2.00 19 ... 4.50 4.50 4 5.50-5.75 5.50 Nov. 6 1.50-2.00 1.50 5 5.50 5.50 8 1.50 1.50 1999—Aug. 24 ... 4.50-4.75 4.75 31 5.00-5.50 5.00 Dec. 11 1.25-1.50 1.25 26 ... 4.75 4.75 Feb. 1 5.00 5.00 13 1.25 1.25 Nov. 16 ... 4.75-5.00 4.75 Mar. 20 4.50-5.00 4.50 18 ... 5.00 5.00 21 4.50 4.50 2002—Nov. 6 0.75-1.25 0.75 Apr. 18 4.00-4.50 4.00 7 0.75 0.75 20 4.00 4.00 2001—May 15 3.50-4.00 3.50 In effect Jan. 8, 2003 0.75 0.75 17 3.50 3.50 (end of program) 1. Available for very short terms as a backup source of liquidity to depository institutions into account rates charged by market sources of funds and ordinarily is reestablished on the that are in generally sound financial condition in the judgment of the lending Federal Reserve first business day of each two-week reserve maintenance period. Bank. 4. Was available until January 8, 2003, to help depository institutions meet temporary 2. Available in appropriate circumstances to depository institutions that do not qualify for needs for funds that could not be met through reasonable alternative sources. For earlier data, primary credit. see the following publications of the Board of Governors: Banking and Monetary Statistics, 3. Available to help relatively small depository institutions meet regular seasonal needs for 1914-1941, and 1941-1970, and the Statistical Digest, 1970-1979, 1980-1989, and funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 1990-1995. See also the Board's Statistics: Releases and Historical Data web pages that cannot be met through special industry lenders. The discount rate on seasonal credit takes (http://www.federalreserve.gov/releases/H15/data.htm). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • February 2003 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of deposits Effective date Net transaction accounts2 1 $0 million-$42.1 million3 33333 1111122222/////2222266666/////0000022222 2 More than $42.1 million4 1111100000 1111122222/////2222266666/////0000022222 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 1. Required reserves must be held in the form of deposits with Federal Reserve Banks or succeeding calendar year by 80 percent of the percentage increase in the total reservable vault cash. Nonmember institutions may maintain reserve balances with a Federal Reserve liabilities of all depository institutions, measured on an annual basis as of June 30. No Bank indirectly, on a pass-through basis, with certain approved institutions. For previous corresponding adjustment is made in the event of a decrease. The exemption applies only to reserve requirements, see earlier editions of the Annual Report or the Federal Reserve accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions include commercial maintenance period beginning December 26, 2002, for depository institutions that report banks, savings banks, savings and loan associations, credit unions, agencies and branches of weekly, and with the period beginning January 16, 2003, for institutions that report quarterly, foreign banks, and Edge Act corporations. the exemption was raised from $5.7 million to $6.0 million. 2. Transaction accounts include all deposits against which the account holder is permitted 4. The reserve requirement was reduced from 12 percent to 10 percent on April 2, 1992, to make withdrawals by negotiable or transferable instruments, payment orders of with- for institutions that report weekly, and on April 16, 1992, for institutions that report quarterly. drawal, or telephone or preauthorized transfers for the purpose of making payments to third 5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits persons or others. However, accounts subject to the rules that permit no more than six with an original maturity of less than 1.5 years was reduced from 3 percent to 1.5 percent for preauthorized, automatic, or other transfers per month (of which no more than three may be the maintenance period that began December 13, 1990, and to zero for the maintenance by check, draft, debit card, or similar order payable directly to third parties) are savings period that began December 27, 1990. For institutions that report quarterly, the reserve deposits, not transaction accounts. requirement on nonpersonal time deposits with an original maturity of less than 1.5 years was 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts reduced from 3 percent to zero on January 17, 1991. against which the 3 percent reserve requirement applies be modified annually by 80 percent of The reserve requirement on nonpersonal time deposits with an original maturity of 1.5 the percentage change in transaction accounts held by all depository institutions, determined years or more has been zero since October 6, 1983. as of June 30 of each year. Effective with the reserve maintenance period beginning 6. The reserve requirement on eurocurrency liabilities was reduced from 3 percent to zero December 26, 2002, for depository institutions that report weekly, and with the period in the same manner and on the same dates as the reserve requirement on nonpersonal time beginning January 16, 2003, for institutions that report quarterly, the amount was increased deposits with an original maturity of less than 1.5 years (see note 5). from $41.3 million to $42.1 million. Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 2002 TTyypp aa ee nn dd oo ff mm ttrr aa aa tt nn uu ss rrii aa tt cc yy tt iioonn 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 0 8,676 15,503 1,047 3,524 3,656 4,838 529 750 0 7 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 464,218 477,904 542,736 45,376 70,978 53,015 45,828 63,083 53,314 62,947 4 For new bills 464,218 477,904 542,736 45,376 70,978 53,015 45,828 63,083 53,314 62,947 5 Redemptions 0 24,522 10,095 0 0 0 0 0 0 0 Others within one year 6 Gross purchases 11,895 8,809 15,663 2,709 2,826 0 1,104 445 1,286 0 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 50,590 62,025 70,336 14,515 6,714 0 11,052 8,987 11,174 6,143 9 Exchanges -53,315 -54,656 -72,004 -15,522 -9,031 0 -14,183 -5,040 -15,189 -5,435 10 Redemptions 1,429 3,779 16,802 0 0 0 0 0 0 0 One to five years 11 Gross purchases 19,731 14,482 22,814 1,142 1,439 0 1,755 1,921 0 0 17 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -44,032 -52,068 -45,211 -14,515 -1,620 0 -11,052 -629 -11,174 -6,143 14 Exchanges 42,604 46,177 64,519 15,522 8,639 0 13,283 3,396 15,189 5,435 Five to ten years 15 Gross purchases 4,303 5,871 6,003 1,670 259 542 577 690 51 0 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,841 -6,801 -21,063 0 -5,094 0 0 -6,714 0 0 18 Exchanges 7,578 6,585 6,063 0 391 0 900 1,645 0 0 More than ten years 19 Gross purchases 9,428 5,833 8,531 210 0 0 63 80 0 00 70 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -717 -3,155 -4,062 0 0 0 0 -1,645 0 0 22 Exchanges 3,133 1,894 1,423 0 0 0 0 0 0 0 All maturities 23 Gross purchases 45,357 43,670 68,513 6,777 8,048 4,198 8,336 3,665 2,087 0 74 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,429 28,301 26,897 0 0 0 0 0 0 0 Matched transactions 26 Gross purchases 4,413,430 4,415,905 4,722,667 436,936 466,807 447,555 513,400 495,729 449,250 429,029 27 Gross sales 4,431,685 4,397,835 4,724,743 437,881 469,046 448,330 511,902 497,031 449,986 425,399 Repurchase agreements 28 Gross purchases 281,599 0 0 0 0 0 0 00 00 00 29 Gross sales 301,273 0 0 0 0 0 0 0 0 0 30 Net change in U.S. Treasury securities 5,999 33,439 39,540 5,833 5,810 3,423 9,834 2,363 1,351 3,630 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 0 0 0 0 32 Gross sales 0 0 0 0 0 0 0 0 0 0 33 Redemptions 157 51 120 0 0 0 0 0 0 0 Repurchase agreements 34 Gross purchases 360,069 0 0 0 0 0 0 00 00 00 35 Gross sales 370,772 0 0 0 0 0 0 0 0 0 36 Net change in federal agency obligations -10,859 -51 -120 0 0 0 0 0 0 0 Reverse repurchase agreements 37 Gross purchases 0 0 0 0 0 0 0 0 0 0 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 304,989 890,236 1,497,713 102,200 106,426 98,850 68,750 84,000 93,500 72,000 40 Gross sales 164,349 987,501 1,490,838 100,200 109,926 94,850 81,250 80,500 94,750 77,250 41 Net change in triparty obligations 140,640 -97,265 6,875 2,000 -3,500 4,000 -12,500 3,500 -1,250 -5,250 42 Total net change in System Open Market Account .. 135,780 -63,877 46,295 7,833 2,310 7,423 -2,666 5,863 101 -1,620 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market 2. Transactions exclude changes in compensation for the effects of inflation on the Account; all other figures increase such holdings. principal of inflation-indexed securities. Transactions include the rollover of inflation compensation into new securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • February 2003 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2002 2002 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 Sept. Oct. Nov. Consolidated condition statement ASSETS 1 Gold certificate account 11,038 11,038 11,038 11,038 11,038 11,038 11,038 11,038 2 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 3 Coin 1,079 1,079 1,080 1,076 1,049 1,085 1,091 1,051 Loans 4 To depository institutions 88 69 67 57 60 177 80 59 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Triparty obligations 1 Repurchase agreements—triparty2 20,500 10,000 21,000 19,250 29,000 21,750 16,500 28,500 Federal agency obligations3 8 Bought outright 10 10 10 10 10 10 10 10 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 608,665 608,770 608,984 606,396 609,614 604,191 607,865 608,985 11 Bought outright4 608,665 608,770 608,984 606,396 609,614 604,191 607,865 608,985 12 Bills 206,641 206,739 206,949 204,355 207,568 202,210 205,840 206,937 13 Notes 295,907 295,911 295,914 297,336 297,339 295,882 295,908 297,340 14 Bonds 106,117 106,120 106,122 104,705 104,707 106,099 106,117 104,708 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 629,263 618,848 630,061 625,712 638,684 626,129 624,456 637,554 17 Items in process of collection 9,359 9,285 15,581 8,236 8,118 2,116 6,256 5,147 18 Bank premises 1,528 1,529 1,530 1,533 1,530 1,519 1,527 1,529 Other assets 19 Denominated in foreign currencies5 16,043 16,210 16,413 16,244 16,160 16,130 16,091 16,161 20 All other6 22,038 21,908 22,323 18,750 19,162 20,597 21,553 19,340 21 Total assets 692,547 682,097 700,227 684,788 697,941 680,813 684,212 694,021 LIABILITIES 22 Federal Reserve notes 631,165 633,315 636,501 635,898 641,286 627,228 630,469 640,806 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 34,453 20,791 32,151 21,764 29,463 31,418 27,077 28,236 25 Depository institutions 28,620 15,669 27,245 16,943 23,972 23,168 20,878 22,978 26 U.S. Treasury—General account 5,388 4,807 4,592 4,519 5,082 7,879 5,878 4,928 27 Foreign—Official accounts 238 72 76 72 224 150 89 78 28 Other 206 243 238 231 184 221 233 253 29 Deferred credit items 7,347 8,420 11,882 7,820 7,757 2,448 6,946 5,364 30 Other liabilities and accrued dividends7 2,452 2,439 2,469 2,421 2,427 2,422 2,479 2,443 31 Total liabilities 675,418 664,965 683,003 667,903 680,933 663,516 666,971 676,848 CAPITAL ACCOUNTS 32 Capital paid in 8,271 8,280 8,285 8,304 8,349 8,264 8,278 8,349 33 Surplus 7,312 7,312 7,312 7,312 7,312 7,312 7,312 7,312 34 Other capital accounts 1,546 1,540 1,627 1,270 1,348 1,722 1,652 1,513 35 Total liabilities and capital accounts 692,547 682,097 700,227 684,788 697,941 680,813 684,212 694,021 MEMO 36 Marketable U.S. government and federal agency securities held in custody for foreign official and international accounts 806,831 807,595 809,887 822,919 831,289 813,094 812,239 832,089 Federal Reserve note statement 37 Federal Reserve notes outstanding (issued to Banks) 751,565 753,486 755,063 757,439 757,885 751,190 752,063 757,793 38 LESS: Held by Federal Reserve Banks 120,400 120,171 118,562 121,541 116,599 123,962 121,595 116,988 39 Federal Reserve notes, net 631,165 633,315 636,501 635,898 641,286 627,228 630,469 640,806 Collateral held against notes, net 40 Gold certificate account 11,038 11,038 11,038 11,038 11,038 11,038 11,038 11,038 41 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 42 Other eligible assets 0 1,297 0 0 0 0 0 0 43 U.S. Treasury and agency securities 617,927 618,780 623,262 622,660 628,048 613,990 617,231 627,567 44 Total collateral 631,165 633,315 636,501 635,898 641,286 627,228 630,469 640,806 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical 5. Valued monthly at market exchange rates. release. For ordering address, see inside front cover. 6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury 2. Cash value of agreements arranged through third-party custodial banks. bills maturing within ninety days. 3. Face value of the securities. 7. Includes exchange-translation account reflecting the monthly revaluation at market 4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with exchange rates of foreign exchange commitments. Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month TTTyyypppeee ooofff hhhooollldddiiinnnggg aaannnddd mmmaaatttuuurrriiitttyyy 2002 2002 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 Sept. Oct. Nov. 1 Total loans 88 69 67 57 60 177 80 59 2 Within fifteen days1 82 30 26 45 56 131 62 44 3 Sixteen days to ninety days 6 38 41 12 4 47 18 15 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 608,665 608,770 608,984 606,396 609,614 604,191 607,865 608,985 6 Within fifteen days1 24,792 19,889 14,823 22,429 25,646 13,316 6,607 12,306 7 Sixteen days to ninety days 129,673 136,133 141,857 135,186 135,245 128,403 129,715 147,874 8 Ninety-one days to one year 144,114 143,363 143,437 142,178 142,115 152,429 162,163 142,194 9 One year to five years 176,890 176,183 176,183 173,804 173,805 176,885 176,182 173,805 10 Five years to ten years 51,458 51,461 50,940 52,972 52,974 51,438 51,458 52,975 11 More than ten years 81,739 81,741 81,743 79,827 79,829 81,721 81,739 79,830 12 Total federal agency obligations 10 10 10 10 10 10 10 10 13 Within fifteen days1 0 0 0 0 0 0 0 0 14 Sixteen days to ninety days 0 0 0 0 0 0 0 0 15 Ninety-one days to one year 0 0 0 0 0 0 0 0 16 One year to five years 10 10 10 10 10 10 10 10 17 Five years to ten years 0 0 0 0 0 0 0 0 18 More than ten years 0 0 0 0 0 0 0 0 1. Holdings under repurchase agreements are classified as maturing within fifteen days in 2. Includes compensation that adjusts for the effects of inflation on the principal of accordance with maximum maturity of the agreements. inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics • February 2003 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2002 IItteemm D 19 e 9 c 8 . D 19 e 9 c 9 . 2 D 0 e 0 c 0 . 2 D 0 e 0 c 1 . Apr.' May' June' July' Aug.' Sept.' Oct.' Nov. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 45.14 41.82 38.54 41.22 40.81 39.16 39.31 39.68 40.05 39.28 38.92 39.56 2 Nonborrowed reserves4 45.02 41.50 38.33 41.15 40.74 39.05 39.17 39.49 39.72 39.05 38.78 39.29 3 Nonborrowed reserves plus extended credit5 45.02 41.50 38.33 41.15 40.74 39.05 39.17 39.49 39.72 39.05 38.78 39.29 4 Required reserves 43.62 40.53 37.11 39.57' 39.59 37.90 38.08 38.31 38.42 37.80 37.37 37.95 5 Monetary base6 513.55 593.12 584.04 634.41 653.92 657.89 664.11 668.76 671.14 671.57 673.63 676.24 Not seasonally adjusted 6 Total reserves7 45.31 41.89 38.53 41.20 40.89 40.23 38.54 39.32 39.74 38.78 38.54 38.98 7 Nonborrowed reserves 45.19 41.57 38.32 41.13 40.82 40.11 38.40 39.13 39.41 38.55 38.40 38.71 8 Nonborrowed reserves plus extended credit5 45.19 41.57 38.32 41.13 40.82 40.11 38.40 39.13 39.41 38.55 38.40 38.71 9 Required reserves8 43.80 40.59 37.10 39.55 39.68 38.96 37.30 37.94 38.10 37.31 36.99 37.37 10 Monetary base9 518.27 600.72 590.06 639.91 653.27 657.98 662.87 668.76 669.32 669.72 671.49 676.65 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 45.21 41.65 38.47 41.08 40.94 40.29 38.62 39.41 39.85 38.91 38.69 39.14 12 Nonborrowed reserves 45.09 41.33 38.26 41.01 40.87 40.18 38.47 39.22 39.52 38.68 38.54 38.87 13 Nonborrowed reserves plus extended credit5 45.09 41.33 38.26 41.01 40.87 40.18 38.47 39.22 39.52 38.68 38.54 38.87 14 Required reserves 43.70 40.36 37.05 39.43 39.73 39.03 37.38 38.04 38.22 37.43 37.13 37.53 15 Monetary base12 525.06 608.02 596.98 648.74 663.35 668.12 673.01 678.98 679.55 679.96 681.83 687.21 16 Excess reserves13 1.51 1.30 1.43 1.65 1.21 1.26 1.24 1.37 1.64 1.48 1.55 1.62 17 Borrowings from the Federal Reserve .12 .32 .21 .07 .07 .11 .14 .19 .33 .23 .14 .27 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly 8. To adjust required reserves for discontinuities that are due to regulatory changes in statistical release. Historical data starting in 1959 and estimates of the effect on required reserve requirements, a multiplicative procedure is used to estimate what required reserves reserves of changes in reserve requirements are available from the Money and Reserves would have been in past periods had current reserve requirements been in effect. Break- Projections Section, Division of Monetary Affairs, Board of Governors of the Federal adjusted required reserves include required reserves against transactions deposits and nonper- Reserve System, Washington, DC 20551. sonal time and savings deposits (but not reservable nondeposit liabilities). 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory 9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus changes in reserve requirements. (See also table 1.10.) (2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all adjusted required reserves (line 4) plus excess reserves (line 16). those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, difference between current vault cash and the amount applied to satisfy current reserve break-adjusted total reserves (line 1) less total borrowings of depository institutions from the requirements. Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no 5. Extended credit consists of borrowing at the discount window under the terms and adjustments to eliminate the effects of discontinuities associated with regulatory changes in conditions established for the extended credit program to help depository institutions deal reserve requirements. with sustained liquidity pressures. Because there is not the same need to repay such 11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve borrowing promptly as with traditional short-term adjustment credit, the money market effect requirements. of extended credit is similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total 6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for component of the money stock, plus (3) (for all quarterly reporters on the "Report of all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve difference between current vault cash and the amount applied to satisfy current reserve requirements. Since February 1984, currency and vault cash figures have been measured over requirements. the computation periods ending on Mondays. 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). reserves (line 16). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK MEASURES1 Billions of dollars, averages of daily figures 2002 1998 1999 2000 2001 Dec. Dec. Dec. Dec.' Aug.' Sept.' Oct.r Nov. Seasonally adjusted Measures2 1 Ml 1,096.5 1,124.4 1,088.9 1,179.3 1,183.2 1,191.2 1,199.6 1,200.7 2 M2 4,383.9 4,654.2 4,938.6 5,458.6 5,680.3 5,705.4 5,753.8 5,800.7 3 M3 6,037.7 6,539.6 7,109.9 8,027.0 8,291.3 8,326.7 8,348.4 8,485.2 Ml components 4 Currency3 459.3 516.9 530.1 579.9 617.3 618.0 619.9 662222..00 Travelers checks4 8.2 8.3 8.0 7.8 8.4 8.0 7.7 7.5 Demand deposits5 378.4 354.5 309.9 329.9 288.2 292.4 295.8 292.9 7 Other checkable deposits6 250.5 244.7 240.9 261.8 269.3 272.9 276.2 278.3 Nontransaction components X In M27 3,287.4 3,529.8 3,849.7 4,279.2 4,497.1 4,514.1 4,554.2 4,600.0 9 In M3 only8 1,653.8 1,885.4 2,171.3 2,568.4 2,611.0 2,621.3 2,594.6 2,684.5 Commercial banks 10 Savings deposits, including MMDAs 1,187.5 1,289.1 1,423.7 1,737.9 1,955.1 1,983.6 2,017.0 2,054.9 11 Small time deposits9 626.1 635.0 699.1 634.5 603.0 596.0 589.9 585.5 12 Large time deposits1011 582.8 651.3 717.2 669.6 706.7 707.1 714.0 701.6 Thrift institutions 13 Savings deposits, including MMDAs 414.7 449.7 452.1 570.1 664.8 677.1 693.5 703.1 14 Small time deposits9 325.6 320.4 344.5 338.8 307.2 304.4 302.0 300.4 15 Large time deposits10 88.6 91.1 102.9 114.7 112.5 113.1 114.1 115.1 Money market mutual funds 1ft Retail 733.6 835.7 930.2 997.9 967.0 953.1 951.8 956.1 17 Institution-only 540.1 638.6 796.6 1,206.5 1,190.8 1,176.6 1,141.1 1,218.0 Repurchase agreements and eurodollars 18 Repurchase agreements12 293.4 335.9 364.0 375.7 398.1 417.7 415.9 436.9 19 Eurodollars12 148.8 168.5 190.7 201.9 202.9 206.8 209.5 212.9 Not seasonally adjusted Measures2 2.0 Ml 1,120.4 1,148.3 1,112.3 1,203.5 1,178.4 1,182.5 1,193.5 1,201.7 21 M2 4,404.0 4,675.0 4,962.3 5,483.5 5,654.8 5,681.2 5,720.1 5,791.4 22 M3 6,066.5 6,571.1 7,145.0 8,065.2 8,239.5 8,258.6 8,281.3 8,469.4 Ml components 23 Currency3 463.3 521.5 535.2 584.9 616.3 616.1 617.9 622.8 24 Travelers checks4 8.4 8.4 8.1 7.9 8.1 7.8 7.7 7.6 25 Demand deposits5 395.9 371.8 326.5 347.6 287.0 289.3 294.9 296.2 26 Other checkable deposits6 252.8 246.6 242.5 263.2 267.0 269.3 272.9 275.2 Nontransaction components 27 In M27 3,283.6 3,526.7 3,849.9 4,280.0 4,476.5 4,498.7 4,526.6 4,589.7 28 In M3 only8 1,662.5 1,896.2 2,182.8 2,581.7 2,584.6 2,577.3 2,561.2 2,678.0 Commercial banks 29 Savings deposits, including MMDAs 1,186.0 1,288.8 1,426.9 1,742.3 1,948.5 1,979.3 2,001.6 2,053.7 30 Small time deposits9 626.5 635.7 700.0 635.2 602.2 596.5 591.5 587.1 31 Large time deposits1011 583.1 651.7 717.6 669.7 704.1 704.7 712.8 703.0 Thrift institutions 32 Savings deposits, including MMDAs 414.2 449.6 453.1 571.5 662.6 675.7 688.2 702.6 33 Small time deposits9 325.8 320.8 345.0 339.2 306.8 304.6 302.8 301.1 34 Large time deposits10 88.6 91.2 103.0 114.7 112.1 112.7 113.9 115.3 Money market mutual funds 35 Retail 731.1 832.0 925.0 991.8 956.3 942.6 942.5 945.2 36 Institution-only 549.5 648.2 805.6 1,217.7 1,170.7 1,144.1 1,119.2 1,211.4 Repurchase agreements and eurodollars 37 Repurchase agreements12 290.4 334.7 364.2 376.5 397.4 411.2 408.8 435.9 38 Eurodollars12 150.8 170.4 192.4 203.0 200.4 204.7 206.4 212.3 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • February 2003 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly ory institutions, the U.S. government, money market funds, and foreign banks and official statistical release. Historical data starting in 1959 are available from the Money and Reserves institutions. Seasonally adjusted M3 is calculated by summing large time deposits, institu- Projections Section, Division of Monetary Affairs, Board of Governors of the Federal tional money fund balances, RP liabilities, and eurodollars, each seasonally adjusted sepa- Reserve System, Washington, DC 20551. rately, and adding this result to seasonally adjusted M2. 2. Composition of the money stock measures is as follows: 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of institutions. depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. commercial banks other than those owed to depository institutions, the U.S. government, and Travelers checks issued by depository institutions are included in demand deposits. foreign banks and official institutions, less cash items in the process of collection and Federal 5. Demand deposits at commercial banks and foreign-related institutions other than those Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of owed to depository institutions, the U.S. government, and foreign banks and official instituwithdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, tions, less cash items in the process of collection and Federal Reserve float. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 6. Consists of NOW and ATS account balances at all depository institutions, credit union adjusted Ml is computed by summing currency, travelers checks, demand deposits, and share draft account balances, and demand deposits at thrift institutions. OCDs, each seasonally adjusted separately. 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time money fund balances. deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities balances in retail money market mutual funds. Excludes individual retirement accounts (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally term) of U.S. addressees. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 9. Small time deposits—including retail RPs—are those issued in amounts of less than and retail money fund balances, each seasonally adjusted separately, and adding this result to $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are seasonally adjusted M1. subtracted from small time deposits. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those issued by all depository institutions, (2) balances in institutional money funds, (3) RP booked at international banking facilities. liabilities (overnight and term) issued by all depository institutions, and (4) eurodollars 11. Large time deposits at commercial banks less those held by money market funds, (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and depository institutions, the U.S. government, and foreign banks and official institutions. at all banking offices in the United Kingdom and Canada. Excludes amounts held by deposit- 12. Includes both overnight and term. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A15 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1 A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 2001 2002 2002 Nov.' May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 6 Nov. 13 Nov. 20 Nov. 27 Seasonally adjusted Assets 1 Bank credit 5,460.4 5,498.7 5,540.6 5,591.1 5,672.8 5,729.0 5,753.4 5,836.4 5,818.9 5,853.5 5,830.2 5,839.2 2 Securities in bank credit 1,494.9 1,535.5 1,562.5 1,594.4 1,632.7 1,642.3 1,637.6 1,687.2 1,687.6 1,706.7 1,681.7 1,676.2 3 U.S. government securities 839.9 893.3 908.9 918.3 945.7 961.9 968.7 1,000.2 1,000.5 993.8 997.1 1,007.3 4 Other securities 655.0 642.2 653.6 676.1 687.0 680.4 668.9 686.9 687.1 712.9 684.7 669.0 5 Loans and leases in bank credit2 .... 3,965.5 3,963.2 3,978.1 3,996.7 4,040.1 4,086.7 4,115.8 4,149.2 4,131.4 4,146.7 4,148.5 4,162.9 6 Commercial and industrial 1,040.5 1,001.2 993.6 982.2 982.3 975.7 970.3 967.7 966.7 963.6 967.7 971.8 7 Real estate 1,772.4 1,816.6 1,838.4 1,869.2 1,900.7 1,935.0 1,967.3 1,999.9 1,994.1 2,009.9 1,990.7 1,999.0 8 Revolving home equity 152.6 179.6 186.1 192.9 197.7 201.0 205.0 207.8 206.5 207.0 207.9 208.9 9 Other 1,619.8 1,637.0 1,652.4 1,676.3 1,703.0 1,734.0 1,762.3 1,792.1 1,787.7 1,802.9 1,782.7 1,790.1 10 Consumer 558.8 569.9 568.6 564.7 574.8 582.8 584.8 585.7 583.7 584.8 586.7 587.5 11 Security3 154.6 169.1 169.7 177.4 176.0 180.7 182.1 186.1 176.4 180.7 191.9 194.7 17 Other loans and leases 439.2 406.4 407.7 403.2 406.3 412.5 411.2 409.8 410.4 407.7 411.5 410.0 13 Interbank loans 286.3 288.4 282.4 288.6 305.6 318.4 327.3 328.2 325.2 321.5 330.0 339.4 14 Cash assets4 297.0 301.5 306.7 309.4 318.1 317.2 318.6 315.1 309.8 323.4 301.1 331.7 15 Other assets5 495.0 482.1 475.6 484.0 499.5 498.4 510.7 518.7 520.3 530.9 518.7 509.1 16 Total assets6 6,467.0 6,494.8 6,529.7 6,597.8 6,720.9 6,788.0 6,834.6 6,922.6 6,898.6 6,953.4 6,904.3 6,943.8 Liabilities 17 Deposits 4,198.1 4,358.7 4,377.4 4,414.0 4,460.5 4,473.4 4,482.5 4,500.0 4,484.6 4,509.6 4,478.5 4,528.2 18 Transaction 635.8 608.8 597.4 612.2 599.1 584.0 611.4 606.2 578.1 591.6 599.5 662.8 19 Nontransaction 3,562.3 3,749.8 3,780.0 3,801.8 3,861.4 3,889.4 3,871.0 3,893.8 3,906.5 3,918.0 3,879.0 3,865.4 20 Large time 982.2 1,042.5 1,036.1 1,048.1 1,049.2 1,044.3 1,026.4 1,004.5 1,006.8 1,007.7 1,007.8 1,000.0 21 Other 2,580.1 2,707.3 2,743.9 2,753.7 2,812.2 2,845.1 2,844.6 2,889.4 2,899.7 2,910.3 2,871.1 2,865.4 22 Borrowings 1,251.0 1,235.3 1,225.9 1,231.7 1,292.7 1,321.5 1,328.2 1,364.0 1,357.7 1,368.5 1,352.9 1,384.8 73 From banks in the U.S 401.5 380.8 373.9 386.2 405.1 416.5 415.5 421.3 424.0 420.9 413.1 430.3 24 From others 849.6 854.5 852.0 845.5 887.6 905.0 912.7 942.7 933.8 947.6 939.9 954.5 25 Net due to related foreign offices 169.3 89.0 89.6 99.2 94.1 100.3 119.3 121.9 124.8 128.6 124.0 104.8 26 Other liabilities 404.8 349.0 386.0 408.0 430.4 434.9 437.2 444.5 454.5 461.7 441.3 427.6 27 Total liabilities 6,023.3 6,032.0 6,078.8 6,152.9 6,277.7 6,330.0 6,367.1 6,430.4 6,421.7 6,468.4 6,396.8 6,445.5 28 Residual (assets less liabilities)7 443.7 462.8 450.8 444.9 443.2 457.9 467.5 492.2 476.9 485.0 507.5 498.3 Not seasonally adjusted Assets 29 Bank credit 5,475.9 5,492.6 5,535.1 5,564.4 5,650.3 5,722.1 5,757.4 5,853.0 5,843.0 5,870.0 5,837.2 5,855.3 30 Securities in bank credit 1,498.6 1,532.8 1,558.3 1,580.2 1,624.0 1,638.6 1,636.9 1,691.4 1,693.3 1,709.2 1,684.1 1,679.7 31 U.S. government securities 840.6 891.0 906.1 910.0 939.4 958.5 964.9 1,001.1 1,001.6 992.8 996.6 1,008.2 37 Other securities 658.0 641.7 652.2 670.2 684.6 680.1 672.0 690.3 691.7 716.4 687.5 671.5 33 Loans and leases in bank credit2 .... 3,977.4 3,959.8 3,976.7 3,984.2 4,026.3 4,083.5 4,120.5 4,161.5 4,149.7 4,160.8 4,153.1 4,175.6 34 Commercial and industrial 1,042.1 1,004.8 995.8 981.1 976.8 973.5 971.6 969.0 970.8 965.0 968.9 971.6 35 Real estate 1,776.9 1,819.2 1,839.4 1,868.5 1,901.8 1,937.1 1,969.4 2,005.0 2,000.1 2,016.8 1,993.8 2,003.6 36 Revolving home equity 153.2 179.9 186.3 192.7 197.8 202.1 205.6 208.6 207.2 207.9 208.8 209.6 37 Other 1,623.7 1,639.3 1,653.1 1,675.8 1,704.0 1,735.1 1,763.8 1,796.4 1,792.9 1,808.9 1,785.1 1,794.0 38 Consumer 561.3 568.1 564.5 558.8 571.3 582.3 585.4 588.2 584.5 586.1 589.4 592.0 39 Credit cards and related plans .. 225.4 222.9 221.0 215.3 224.4 231.2 232.0 231.6 228.4 229.7 232.7 234.7 40 Other 335.9 345.3 343.4 343.5 346.9 351.1 353.4 356.6 356.1 356.4 356.7 357.3 41 Security3 157.9 162.6 168.7 172.8 171.5 178.8 184.5 189.8 183.7 185.7 190.2 199.2 42 Other loans and leases 439.3 405.1 408.3 402.9 404.8 411.7 409.6 409.5 410.6 407.3 410.7 409.2 43 Interbank loans 289.9 285.0 284.5 282.8 299.2 310.6 321.9 332.1 335.5 328.0 329.4 335.8 44 Cash assets4 306.2 298.8 299.0 300.2 303.8 314.1 321.0 325.0 310.6 341.9 307.8 343.2 45 Other assets5 496.2 481.8 473.9 482.8 496.8 500.9 509.4 519.9 525.2 533.6 516.0 508.3 46 Total assets6 6,496.4 6,482.2 6,516.8 6,555.0 6,675.0 6,772.4 6,834.6 6,954.0 6,938.5 6,997.5 6,914.5 6,966.8 Liabilities 47 Deposits 4,217.3 4,351.6 4,365.2 4,384.9 4,413.7 4,441.4 4,467.4 4,519.8 4,502.5 4,538.3 4,489.9 4,539.5 48 Transaction 641.8 600.8 594.4 604.7 583.8 577.9 606.2 611.8 575.8 602.2 602.4 670.1 49 Nontransaction 3,575.4 3,750.8 3,770.8 3,780.1 3,829.9 3,863.5 3,861.1 3,908.1 3,926.7 3,936.1 3,887.4 3,869.5 50 Large time 989.0 1,046.1 1,033.8 1,037.1 1,033.5 1,029.7 1,020.3 1,011.5 1,009.8 1,013.7 1,014.1 1,010.4 51 Other 2,586.5 2,704.7 2,737.0 2,743.0 2,796.4 2,833.8 2,840.8 2,896.6 2,916.9 2,922.4 2,873.3 2,859.1 52 Borrowings 1,254.1 1,241.7 1,225.0 1,221.7 1,272.6 1,318.9 1,330.2 1,367.2 1,366.9 1,374.1 1,353.2 1,383.3 53 From banks in the U.S 398.8 382.1 371.4 382.2 399.9 409.6 413.7 418.5 424.2 418.8 408.3 425.0 54 From others 855.4 859.7 853.6 839.6 872.7 909.3 916.4 948.7 942.7 955.3 944.9 958.3 55 Net due to related foreign offices 172.6 88.6 85.7 90.0 91.1 100.8 118.6 125.5 124.7 131.0 128.1 113.4 56 Other liabilities 410.5 348.5 383.0 399.1 427.6 435.0 437.3 450.1 457.2 465.8 447.5 437.9 57 Total liabilities 6,054.5 6,030.4 6,058.9 6,095.7 6,205.0 6,296.1 6,353.4 6,462.6 6,451.3 6,509.1 6,418.5 6,474.1 58 Residual (assets less liabilities)7 441.9 451.7 457.9 459.3 470.0 476.3 481.2 491.4 487.3 488.4 495.9 492.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • February 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2001 2002 2002 Nov.' May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 6 Nov. 13 Nov. 20 Nov. 27 Seasonally adjusted Assets 1 Bank credit 4,860.6 4,903.0 4,935.0 4,976.9 5,052.0 5,111.4 5,144.9 5,215.6 5,204.3 5,230.2 5,207.7 5,216.3 2 Securities in bank credit 1,254.4 1,304.4 1,324.2 1,353.2 1,382.7 1,395.7 1,397.4 1,438.3 1,438.1 1,450.6 1,433.5 1,433.1 3 U.S. government securities 755.9 819.9 832.8 841.9 863.8 875.7 882.5 907.4 908.6 899.7 903.1 915.3 4 Other securities 498.5 484.5 491.5 511.3 518.8 520.0 514.8 530.9 529.5 550.9 530.4 517.8 5 Loans and leases in bank credit2 .... 3,606.2 3,598.6 3,610.8 3,623.7 3,669.3 3,715.6 3,747.5 3,777.4 3,766.2 3,779.6 3,774.2 3,783.2 6 Commercial and industrial 844.5 804.5 800.6 790.9 792.4 790.2 789.1 788.6 787.0 785.8 789.3 792.0 7 Real estate 1,754.7 1,798.5 1,820.0 1,850.4 1,881.8 1,916.0 1,947.8 1,980.1 1,974.1 1,989.8 1,970.8 1,979.4 8 Revolving home equity 152.6 179.6 186.1 192.9 197.7 201.0 205.0 207.8 206.5 207.0 207.9 208.9 9 Other 1,602.1 1,618.9 1,633.9 1,657.5 1,684.1 1,715.0 1,742.8 1,772.3 1,767.6 1,782.9 1,762.8 1,770.5 10 Consumer 558.8 569.9 568.6 564.7 574.8 582.8 584.8 585.7 583.7 584.8 586.7 587.5 11 Security3 77.1 88.8 84.1 86.6 85.6 86.1 85.5 81.0 79.1 80.0 83.4 82.4 12 Other loans and leases 371.2 336.9 337.5 331.1 334.7 340.5 340.3 342.0 342.3 339.2 344.1 341.9 13 Interbank loans 261.1 265.0 262.2 271.1 287.1 296.7 301.8 301.6 300.2 293.6 301.9 314.4 14 Cash assets4 258.6 256.3 261.2 263.4 271.6 271.2 273.3 274.1 267.6 282.2 261.4 290.4 15 Other assets5 459.0 455.7 447.8 454.5 470.5 470.3 477.6 480.6 480.9 492.6 480.4 472.1 16 Total assets6 5,768.1 5,804.4 5,830.9 5,891.0 6,006.6 6,074.9 6,122.6 6,196.6 6,177.7 6,223.2 6,176.1 6,218.0 Liabilities 17 Deposits 3,768.4 3,853.5 3,872.2 3,915.2 3,965.5 3,987.4 4,016.5 4,051.6 4,037.1 4,059.6 4,024.0 4,084.4 18 Transaction 624.9 598.3 587.1 602.3 589.1 573.9 601.6 596.7 568.5 581.9 590.4 653.3 19 Nontransaction 3,143.4 3,255.3 3,285.1 3,312.8 3,376.4 3,413.5 3,414.9 3,454.8 3,468.6 3,477.7 3,433.6 3,431.1 20 Large time 565.8 550.2 543.8 562.3 569.9 574.3 577.8 573.7 576.9 576.7 573.3 571.1 21 Other 2,577.6 2,705.1 2,741.3 2,750.5 2,806.5 2,839.2 2,837.1 2,881.1 2,891.7 2,901.0 2,860.2 2,860.0 22 Borrowings 1,042.4 1,045.9 1,033.0 1,030.4 1,078.9 1,098.2 1,098.7 1,109.4 1,106.8 1,111.0 1,106.1 1,122.1 23 From banks in the U.S 377.8 359.8 352.5 365.4 383.5 393.8 392.4 395.7 398.6 400.0 389.1 400.1 24 From others 664.5 686.1 680.4 665.0 695.4 704.4 706.4 713.6 708.3 711.1 716.9 722.0 25 Net due to related foreign offices 189.2 180.0 175.7 181.0 179.7 184.1 191.9 196.8 192.8 208.2 195.9 184.6 26 Other liabilities 323.0 272.5 300.5 317.1 333.6 342.7 340.2 345.4 351.5 355.5 346.5 334.5 27 Total liabilities 5,323.0 5,351.9 5,381.4 5,443.7 5,557.7 5,612.3 5,647.3 5,703.2 5,688.3 5,734.4 5,672.4 5,725.6 28 Residual (assets less liabilities)7 445.1 452.5 449.5 447.4 448.9 462.6 475.3 493.4 489.4 488.8 503.7 492.4 Not seasonally adjusted Assets 29 Bank credit 4,873.5 4,900.8 4,932.5 4,956.3 5,035.7 5,107.8 5,148.9 5,229.4 5,222.4 5,242.6 5,217.1 5,228.7 30 Securities in bank credit 1,258.1 1,301.7 1,320.1 1,339.0 1,374.0 1,392.0 1,396.7 1,442.5 1,443.8 1,453.1 1,435.9 1,436.6 31 U.S. government securities 756.6 817.6 830.0 833.6 857.6 872.2 878.7 908.3 909.6 898.7 902.7 916.2 32 Other securities 501.4 484.1 490.1 505.5 516.5 519.7 518.0 534.3 534.2 554.4 533.2 520.4 33 Loans and leases in bank credit2 .... 3,615.4 3,599.1 3,612.4 3,617.3 3,661.7 3,715.9 3,752.2 3,786.9 3,778.5 3,789.5 3,781.2 3,792.2 34 Commercial and industrial 844.4 810.3 803.9 791.2 788.5 788.2 789.7 788.4 789.3 785.9 788.8 790.5 35 Real estate 1,759.2 1,801.1 1,821.0 1,849.8 1,883.0 1,918.1 1,949.9 1,985.2 1,980.1 1,996.7 1,973.9 1,984.0 36 Revolving home equity 153.2 179.9 186.3 192.7 197.8 202.1 205.6 208.6 207.2 207.9 208.8 209.6 37 Other 1,606.0 1,621.2 1,634.7 1,657.0 1,685.2 1,716.1 1,744.3 1,776.6 1,772.9 1,788.9 1,765.2 1,774.4 38 Consumer 561.3 568.1 564.5 558.8 571.3 582.3 585.4 588.2 584.5 586.1 589.4 592.0 39 Credit cards and related plans .. 225.4 222.9 221.0 215.3 224.4 231.2 232.0 231.6 228.4 229.7 232.7 234.7 40 Other 335.9 345.3 343.4 343.5 346.9 351.1 353.4 356.6 356.1 356.4 356.7 357.3 41 Security3 79.3 83.6 84.7 85.4 84.5 87.1 87.7 83.4 82.2 81.9 85.7 84.7 42 Other loans and leases 371.2 336.0 338.4 332.1 334.5 340.2 339.4 341.7 342.5 338.9 343.3 340.9 43 Interbank loans 264.7 261.5 264.3 265.3 280.7 288.8 296.5 305.5 310.5 300.1 301.2 310.7 44 Cash assets4 265.6 255.0 255.5 256.1 258.7 268.0 274.7 281.6 266.5 297.9 265.7 299.4 45 Other assets5 460.4 455.4 447.2 454.4 468.3 472.3 477.0 482.0 486.4 495.9 478.3 471.1 46 Total assets6 5,792.7 5,797.2 5,824.2 5,857.4 5,968.6 6,062.1 6,122.4 6,223.0 6,210.3 6,260.9 6,186.7 6,234.5 Liabilities 47 Deposits 3,784.1 3,841.4 3,861.8 3,895.0 3,933.0 3,967.4 4,008.8 4,067.8 4,056.1 4,085.6 4,032.0 4,088.2 48 Transaction 630.9 590.7 584.3 594.9 574.0 567.6 596.3 602.2 566.2 592.3 593.1 660.4 49 Nontransaction 3,153.2 3,250.8 3,277.5 3,300.1 3,359.1 3,399.8 3,412.4 3,465.6 3,489.9 3,493.3 3,438.8 3,427.8 50 Large time 569.2 548.3 543.0 560.2 568.3 571.7 579.0 577.3 581.0 580.2 576.5 574.2 51 Other 2,584.0 2,702.4 2,734.4 2,739.9 2,790.8 2,828.1 2,833.5 2,888.3 2,908.9 2,913.1 2,862.4 2,853.6 52 Borrowings 1,045.5 1,052.3 1,032.1 1,020.4 1,058.8 1,095.6 1,100.7 1,112.6 1,116.0 1,116.7 1,106.3 1,120.6 53 From banks in the U.S 375.1 361.0 350.1 361.4 378.3 386.9 390.6 392.9 398.8 397.8 384.3 394.8 54 From others 670.3 691.3 682.0 659.0 680.5 708.7 710.1 719.6 717.2 718.8 722.0 725.8 55 Net due to related foreign offices 193.9 179.6 174.5 175.8 178.7 183.6 192.5 201.5 196.3 211.8 201.1 191.4 56 Other liabilities 329.2 272.1 298.9 310.4 332.0 342.2 341.1 351.8 356.7 360.4 353.4 343.7 57 Total liabilities 5,352.7 5,345.4 5,367.3 5,401.7 5,502.6 5,588.8 5,643.1 5,733.6 5,725.0 5,774.5 5,692.8 5,743.8 58 Residual (assets less liabilities)7 440.1 451.8 457.0 455.7 466.0 473.3 479.2 489.4 485.3 486.4 494.0 490.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A17 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2001 2002 2002 Nov.' May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 6 Nov. 13 Nov. 20 Nov. 27 Seasonally adjusted Assets 1 Bank credit 2,650.5 2,582.5 2,601.6 2,635.3 2,683.2 2,720.0 2,733.6 2,787.4 2,783.7 2,802.4 2,779.4 2,783.8 ? Securities in bank credit 652.2 664.1 683.6 713.2 736.6 745.4 743.3 779.7 780.7 792.9 776.7 773.3 U.S. government securities 371.0 390.5 400.1 410.9 427.5 432.0 435.2 455.4 457.4 449.1 452.8 461.6 4 Trading account 40.5 43.0 42.4 43.1 48.0 42.6 37.8 48.1 51.1 44.4 46.6 50.8 Investment account 330.5 347.5 357.8 367.9 379.5 389.3 397.5 407.4 406.3 404.7 406.2 410.8 6 Other securities 281.2 273.6 283.5 302.3 309.1 313.5 308.0 324.3 323.3 343.8 323.9 311.7 7 Trading account 165.4 140.5 148.3 168.8 174.5 172.7 161.5 171.8 175.0 190.6 169.2 158.9 8 Investment account 115.8 133.1 135.2 133.5 134.6 140.8 146.5 152.5 148.2 153.2 154.7 152.8 9 State and local government .. 27.1 26.9 27.3 28.3 28.0 28.4 28.7 29.1 28.7 29.1 29.3 29.3 in Other 88.7 106.2 107.8 105.3 106.5 112.4 117.8 123.3 119.5 124.1 125.4 123.5 n Loans and leases in bank credit2 .... 1,998.3 1,918.4 1,918.0 1,922.0 1,946.7 1,974.5 1,990.3 2,007.6 2,003.0 2,009.5 2,002.8 2,010.6 17 Commercial and industrial 547.1 504.7 500.5 489.2 488.2 484.6 482.9 481.2 481.0 479.0 481.7 483.3 13 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 547.1 504.7 500.5 489.2 488.2 484.6 482.9 481.2 481.0 479.0 481.7 483.3 Real estate 862.7 848.8 861.9 882.0 901.0 921.9 941.4 964.9 960.3 971.7 955.4 966.9 16 Revolving home equity 96.8 112.4 116.9 121.6 124.6 126.8 129.5 131.7 130.4 131.0 131.9 132.8 17 Other 765.9 736.4 745.0 760.4 776.5 795.1 811.9 833.2 829.9 840.7 823.6 834.1 18 Consumer 247.2 246.6 242.4 243.1 248.6 254.1 255.1 254.7 255.6 255.0 254.2 254.5 19 Security3 69.4 81.6 76.7 78.9 77.6 77.9 77.1 72.7 70.9 71.9 75.3 73.5 20 Federal funds sold to and repurchase agreements with broker-dealers 54.7 69.4 64.7 66.4 66.3 67.9 66.8 62.0 61.0 60.6 64.1 6622..88 71 Other 14.7 12.3 12.0 12.5 11.3 10.0 10.3 10.7 9.9 11.3 11.2 10.8 27, State and local government 15.7 13.0 13.0 12.8 12.9 13.0 12.9 12.1 12.0 12.2 12.1 12.1 23 Agricultural 10.0 9.2 9.1 9.0 8.2 8.2 8.1 8.1 8.1 8.1 8.1 8.1 24 Federal funds sold to and repurchase agreements with others 31.1 19.1 17.6 13.7 16.6 19.8 19.2 18.5 21.3 18.4 19.2 1155..11 75 All other loans 79.0 67.6 70.0 67.1 67.5 69.2 69.4 72.4 70.4 70.0 74.0 74.4 26 Lease-financing receivables 136.1 127.8 126.8 126.3 126.1 125.9 124.2 123.0 123.4 123.2 122.8 122.7 27 Interbank loans 157.0 171.5 163.4 164.9 176.5 182.0 181.6 180.2 183.8 176.8 182.1 181.1 28 Federal funds sold to and repurchase agreements with commercial banks 94.7 87.2 77.2 77.2 86.8 89.2 84.0 87.3 90.5 87.3 8888..88 8844..88 79 Other 62.2 84.2 86.2 87.7 89.7 92.8 97.6 92.9 93.3 89.5 93.3 96.2 30 Cash assets4 151.2 141.3 143.2 142.5 146.9 144.3 144.1 145.0 140.4 150.5 135.8 157.2 31 Other assets5 330.2 308.4 303.0 310.5 321.6 319.4 328.0 327.9 325.9 334.0 328.5 327.6 32 Total assets6 3,248.2 3,159.2 3,167.1 3,209.2 3,284.9 3,322.8 3,344.3 3,397.3 3,390.4 3,420.4 3,382.6 3,406.7 Liabilities 33 Deposits 1,807.1 1,814.7 1,817.5 1,846.8 1,872.5 1,883.2 1,899.5 1,924.0 1,915.3 1,930.3 1,905.4 1,942.7 34 Transaction 323.4 291.1 286.7 292.2 282.4 268.3 286.9 282.5 266.6 274.6 277.4 315.3 35 Nontransaction 1,483.8 1,523.6 1,530.8 1,554.6 1.590.2 1,614.9 1,612.6 1,641.5 1,648.7 1,655.7 1,628.0 1,627.4 36 Large time 255.3 249.2 244.3 261.5 268.3 271.8 272.7 267.2 271.7 270.4 266.1 264.2 37 Other 1,228.5 1,274.4 1,286.5 1,293.1 1,321.9 1,343.1 1,339.9 1,374.3 1,377.0 1,385.3 1,361.9 1,363.2 38 Borrowings 666.8 658.0 643.2 636.6 670.3 672.6 669.3 680.0 681.8 685.1 672.9 690.8 39 From banks in the U.S 209.2 190.0 181.7 191.3 201.0 206.6 205.4 210.7 213.8 216.9 202.3 215.5 40 From others 457.5 468.0 461.5 445.3 469.3 466.0 463.8 469.3 468.1 468.1 470.7 475.3 41 Net due to related foreign offices 178.8 168.3 164.0 171.2 171.2 175.4 179.5 185.5 180.6 194.1 186.6 175.4 42 Other liabilities 258.5 198.3 225.3 241.7 255.0 262.0 258.5 261.5 268.0 270.6 262.0 251.5 43 Total liabilities 2,911.2 2,839.3 2,850.0 2,896.3 2,969.0 2,993.2 3,006.8 3,051.0 3,045.7 3,080.0 3,027.0 3,060.4 44 Residual (assets less liabilities)7 336.9 319.9 317.1 312.9 315.9 329.5 337.5 346.2 344.7 340.3 355.5 346.3 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • February 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2001 2002 2002 Nov.r Mayr June' July' Aug.' Sept.' Oct.' Nov. Nov. 6 Nov. 13 Nov. 20 Nov. 27 Not seasonally adjusted Assets 45 Bank credit 2,658.1 2,582.5 2,601.8 2,620.0 2,669.9 2,714.4 2,732.2 2,795.5 2,795.5 2,808.9 2,784.8 2,789.4 46 Securities in bank credit 656.0 662.1 680.0 701.2 730.3 742.8 743.8 784.1 787.2 795.7 779.6 776.0 47 U.S. government securities 371.8 389.0 397.9 404.7 423.6 429.5 432.6 456.5 459.2 448.4 452.9 461.8 48 Trading account 40.6 42.8 42.2 42.4 47.6 42.4 37.6 48.2 51.3 44.3 46.6 50.8 49 Investment account 331.2 346.2 355.7 362.3 376.0 387.1 395.1 408.3 407.9 404.0 406.3 411.0 50 Mortgage-backed securities . 266.6 272.0 277.5 287.3 304.5 308.0 312.9 324.4 328.0 323.2 319.2 324.4 51 Other 64.6 74.1 78.2 75.0 71.4 79.1 82.2 83.8 79.8 80.8 87.1 86.6 52 One year or less 18.5 16.1 14.9 18.7 17.4 19.9 21.8 23.2 22.4 22.8 24.1 23.9 53 One to five years 31.2 45.1 50.0 43.7 42.2 46.3 49.9 47.1 46.7 47.0 47.9 46.8 54 More than five years .... 14.9 12.9 13.3 12.7 11.8 12.9 10.4 13.5 10.8 11.0 15.0 15.8 55 Other securities 284.2 273.1 282.1 296.5 306.7 313.2 311.2 327.7 328.0 347.4 326.7 314.2 56 Trading account 167.1 140.2 147.5 165.5 173.1 172.6 163.2 173.6 177.6 192.6 170.7 160.2 57 Investment account 117.1 132.9 134.5 131.0 133.6 140.7 148.0 154.0 150.4 154.8 156.0 154.0 58 State and local government . 27.4 26.9 27.2 27.7 27.8 28.4 29.0 29.4 29.1 29.4 29.5 29.6 59 Other 89.6 106.0 107.3 103.3 105.7 112.3 119.0 124.6 121.3 125.4 126.5 124.5 60 Loans and leases in bank credit2 . . . 2,002.1 1,920.4 1,921.8 1,918.7 1,939.7 1,971.6 1,988.4 2,011.3 2,008.3 2,013.2 2,005.2 2,013.4 61 Commercial and industrial 548.0 508.1 501.8 488.9 485.7 484.3 483.6 482.1 483.6 480.1 482.7 483.0 62 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 63 Other 548.0 508.1 501.8 488.9 485.7 484.3 483.6 482.1 483.6 480.1 482.7 483.0 64 Real estate 864.5 852.2 863.8 882.2 901.5 922.3 940.2 966.9 962.6 974.7 956.4 968.0 65 Revolving home equity 96.9 112.9 117.3 121.9 124.9 127.3 129.5 131.9 130.5 131.1 132.2 132.9 66 Other 451.2 426.1 435.1 448.7 464.4 482.2 495.3 518.6 515.7 527.3 507.6 518.7 67 Commercial 316.3 313.2 311.4 311.6 312.1 312.8 315.4 316.4 316.3 316.3 316.7 316.3 68 Consumer 246.0 247.3 242.3 241.2 246.4 251.6 252.2 253.4 253.5 253.1 252.7 254.1 69 Credit cards and related plans . 78.3 74.4 72.1 70.9 73.6 75.9 74.8 73.0 73.9 73.2 72.3 72.9 70 Other 167.6 172.8 170.2 170.3 172.8 175.6 177.4 180.4 179.6 179.9 180.5 181.2 71 Security3 71.3 76.6 77.4 77.8 76.5 79.1 79.4 74.7 73.5 73.5 77.3 75.7 72 Federal funds sold to and repurchase agreements with broker-dealers 56.2 65.0 65.3 65.5 65.3 69.0 68.8 63.7 63.2 61.9 65.8 64.6 73 Other 15.1 11.5 12.1 12.3 11.2 10.1 10.6 11.0 10.3 11.5 11.5 11.1 74 State and local government 15.7 13.0 13.0 12.8 12.9 13.0 12.9 12.1 12.0 12.2 12.1 12.1 75 Agricultural 9.9 9.3 9.3 9.2 8.2 8.2 8.0 8.0 8.1 8.1 8.0 8.0 76 Federal funds sold to and repurchase agreements with others 31.5 19.1 17.6 13.7 16.6 19.8 19.2 18.5 21.3 18.4 19.2 15.1 77 All other loans 79.5 67.0 70.4 67.3 67.0 69.4 69.3 72.9 70.7 70.3 74.2 74.9 78 Lease-financing receivables 135.7 127.8 126.4 125.6 124.8 124.0 123.6 122.7 123.1 122.9 122.5 122.4 79 Interbank loans 158.6 172.7 168.5 164.0 171.9 177.0 177.2 182.0 185.6 180.1 181.1 182.9 80 Federal funds sold to and repurchase agreements with commercial banks 95.7 87.8 79.5 76.8 84.6 86.8 82.0 88.2 91.4 88.9 88.3 85.7 81 Other 62.9 84.8 88.9 87.2 87.3 90.2 95.2 93.9 94.2 91.2 92.8 97.2 82 Cash assets4 154.3 140.8 139.1 137.1 137.9 141.6 145.0 147.9 139.0 159.1 136.3 160.1 83 Other assets5 331.6 308.0 302.5 310.4 319.3 321.4 327.4 329.3 331.4 337.3 326.4 326.6 84 Total assets6 3,261.8 3,159.5 3,167.7 3,187.6 3,255.6 3,311.2 3,339.2 3,411.4 3,408.1 3,442.1 3,385.1 3,415.8 Liabilities 85 Deposits 1,816.1 1,809.2 1,816.0 1,838.7 1,856.1 1,874.5 1,896.5 1,933.1 1,925.4 1,947.0 1,910.4 1,943.9 86 Transaction 326.9 288.3 285.2 287.2 270.9 263.9 282.9 285.5 262.3 281.3 279.4 320.3 87 Nontransaction 1,489.2 1,521.0 1,530.8 1,551.5 1,585.2 1,610.6 1,613.6 1,647.6 1,663.1 1,665.6 1,630.9 1,623.6 88 Large time 258.7 247.3 243.5 259.3 266.6 269.3 274.0 270.8 275.9 273.9 269.2 267.3 89 Other 1,230.5 1,273.7 1,287.3 1,292.2 1,318.6 1,341.3 1,339.6 1,376.8 1,387.2 1,391.7 1,361.8 1,356.3 90 Borrowings 669.8 664.4 642.3 626.6 650.2 670.0 671.2 683.2 691.0 690.7 673.2 689.3 91 From banks in the U.S 206.5 191.3 179.3 187.3 195.8 199.8 203.7 207.9 214.0 214.8 197.5 210.2 92 From nonbanks in the U.S 463.3 473.2 463.1 439.4 454.4 470.2 467.5 475.2 477.0 475.9 475.7 479.1 93 Net due to related foreign offices 183.5 168.0 162.8 166.0 170.2 175.0 180.2 190.2 184.1 197.7 191.9 182.2 94 Other liabilities 264.8 197.8 223.7 235.1 253.4 261.5 259.4 267.9 273.1 275.4 268.9 260.7 95 Total liabilities 2,934.2 2,839.5 2,844.8 2,866.5 2,929.9 2,981.0 3,007.3 3,074.3 3,073.6 3,110.8 3,044.3 3,076.0 96 Residual (assets less liabilities)7 327.6 320.0 322.9 321.2 325.7 330.2 331.9 337.1 334.5 331.3 340.8 339.8 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2001 2002 2002 Nov.r Mayr June1 July' Aug.r Sept.' Oct.' Nov. Nov. 6 Nov. 13 Nov. 20 Nov. 27 Seasonally adjusted Assets 1 Bank credit 2,210.1 2,320.5 2,333.4 2,341.6 2,368.7 2,391.4 2,411.3 2,428.3 2,420.6 2,427.8 2,428.3 2,432.5 ?. Securities in bank credit 602.2 640.3 640.6 639.9 646.1 650.3 654.1 658.6 657.4 657.7 656.9 659.8 U.S. government securities 384.9 429.4 432.6 430.9 436.3 443.7 447.3 452.0 451.2 450.7 450.4 453.7 4 Other securities 217.3 210.9 208.0 209.0 209.8 206.5 206.8 206.6 206.2 207.0 206.5 206.2 Loans and leases in bank credit2 .... 1,608.0 1,680.1 1,692.8 1,701.7 1,722.6 1,741.1 1,757.2 1,769.7 1,763.2 1,770.1 1,771.5 1,772.6 6 Commercial and industrial 297.4 299.8 300.1 301.8 304.3 305.6 306.2 307.4 306.0 306.7 307.6 308.7 7 Real estate 892.0 949.7 958.1 968.4 980.8 994.1 1,006.4 1,015.2 1,013.8 1,018.2 1,015.3 1,012.6 8 Revolving home equity 55.8 67.2 69.2 71.3 73.1 74.3 75.5 76.1 76.0 76.0 76.1 76.1 9 Other 836.2 882.5 888.9 897.1 907.7 919.8 930.9 939.1 937.8 942.2 939.3 936.4 in Consumer 311.6 323.3 326.2 321.6 326.2 328.7 329.7 331.0 328.1 329.9 332.5 333.1 ii Security3 7.7 7.2 7.5 7.7 8.0 8.2 8.4 8.3 8.2 8.0 8.1 8.8 17 Other loans and leases 99.2 100.1 101.0 102.2 103.3 104.5 106.5 107.9 107.1 107.3 107.9 109.5 n Interbank loans 104.1 93.5 98.8 106.2 110.7 114.7 120.2 121.4 116.4 116.9 119.8 133.3 14 Cash assets4 107.4 114.9 118.0 120.9 124.7 126.9 129.2 129.1 127.2 131.7 125.6 133.2 15 Other assets5 128.8 147.3 144.8 144.0 148.9 150.9 149.6 152.7 155.0 158.6 152.0 144.5 16 Total assets6 2,519.9 2,645.2 2,663.8 2,681.8 2,721.7 2,752.1 2,778.3 2,799.3 2,787.3 2,802.9 2,793.5 2,811.3 Liabilities 17 Deposits 1,961.2 2,038.8 2,054.7 2,068.4 2,093.0 2,104.2 2,117.0 2,127.6 2,121.8 2,129.3 2,118.5 2,141.7 18 Transaction 301.6 307.2 300.3 310.1 306.7 305.6 314.7 314.2 302.0 307.3 313.0 338.0 19 Nontransaction 1,659.7 1,731.7 1,754.4 1,758.3 1,786.2 1,798.6 1,802.3 1,813.4 1,819.8 1,822.0 1,805.6 1,803.7 70 Large time 310.5 301.0 299.5 300.9 301.7 302.5 305.0 306.6 305.2 306.3 307.3 306.9 2.1 Other 1,349.2 1,430.7 1,454.8 1,457.4 1,484.6 1,496.1 1,497.2 1,506.8 1,514.7 1,515.7 1,498.3 1,496.8 22 Borrowings 375.6 387.9 389.8 393.8 408.6 425.6 429.5 429.4 425.0 426.0 433.1 431.3 73 From banks in the U.S 168.6 169.8 170.8 174.1 182.5 187.1 186.9 185.0 184.8 183.1 186.8 184.6 24 From others 207.0 218.1 218.9 219.7 226.2 238.4 242.5 244.4 240.2 242.9 246.3 246.7 25 Net due to related foreign offices 10.4 11.6 11.7 9.8 8.5 8.6 12.3 11.3 12.2 14.1 9.3 9.2 26 Other liabilities 64.4 74.2 75.2 75.4 78.7 80.7 81.7 83.9 83.5 85.0 84.5 83.0 27 Total liabilities 2,411.7 2,512.6 2,531.4 2,547.3 2,588.7 2,619.1 2,640.5 2,652.1 2,642.6 2,654.4 2,645.4 2,665.2 28 Residual (assets less liabilities)7 108.2 132.6 132.4 134.5 133.0 133.1 137.8 147.2 144.7 148.5 148.1 146.0 Not seasonally adjusted Assets 29 Bank credit 2,215.3 2,318.3 2,330.7 2,336.3 2,365.8 2,393.4 2,416.7 2,434.0 2,426.9 2,433.6 2,432.3 2,439.4 30 Securities in bank credit 602.0 639.5 640.1 637.8 643.8 649.2 652.9 658.4 656.6 657.4 656.3 660.6 31 U.S. government securities 384.8 428.6 432.1 428.8 434.0 442.7 446.1 451.8 450.4 450.3 449.8 454.4 37 Other securities 217.3 210.9 208.0 209.0 209.8 206.5 206.8 206.6 206.2 207.0 206.5 206.2 33 Loans and leases in bank credit2 .... 1,613.3 1,678.8 1,690.6 1,698.5 1,722.0 1,744.2 1,763.8 1,775.6 1,770.3 1,776.3 1,776.0 1,778.8 34 Commercial and industrial 296.4 302.2 302.2 302.4 302.8 303.9 306.1 306.3 305.7 305.8 306.1 307.5 35 Real estate 894.7 948.9 957.2 967.5 981.5 995.8 1,009.7 1,018.3 1,017.5 1,022.0 1,017.5 1,016.1 36 Revolving home equity 56.3 67.0 69.0 70.9 72.9 74.7 76.1 76.7 76.7 76.7 76.6 76.7 37 Other 838.4 881.9 888.2 896.6 908.6 921.1 933.6 941.6 940.8 945.3 940.9 939.4 38 Consumer 315.3 320.9 322.2 317.6 324.9 330.7 333.2 334.8 331.0 333.0 336.7 337.9 39 Credit cards and related plans . . 147.1 148.4 148.9 144.4 150.8 155.2 157.2 158.6 154.6 156.5 160.4 161.8 40 Other 168.2 172.4 173.2 173.2 174.2 175.5 176.0 176.3 176.5 176.5 176.2 176.1 41 Security3 8.0 7.0 7.3 7.6 7.9 8.0 8.3 8.6 8.7 8.5 8.4 8.9 42 Other loans and leases 98.9 99.8 101.8 103.5 104.9 105.8 106.5 107.5 107.4 107.1 107.3 108.3 43 Interbank loans 106.1 88.9 95.8 101.3 108.8 111.8 119.2 123.4 124.9 120.0 120.1 127.8 44 Cash assets4 111.2 114.3 116.4 119.0 120.9 126.5 129.7 133.6 127.5 138.7 129.4 139.3 45 Other assets5 128.8 147.3 144.8 144.0 148.9 150.9 149.6 152.7 155.0 158.6 152.0 144.5 46 Total assets6 2,530.9 2,637.7 2,656.5 2,669.7 2,713.1 2,750.9 2,783.1 2,811.6 2,802.3 2,818.8 2,801.6 2,818.7 Liabilities 47 Deposits 1,968.0 2,032.2 2,045.8 2,056.3 2,077.0 2,092.9 2,112.3 2,134.7 2,130.7 2,138.6 2,121.6 2,144.3 48 Transaction 304.0 302.4 299.2 307.7 303.1 303.7 313.4 316.7 303.8 310.9 313.7 340.1 49 Nontransaction 1,664.0 1,729.8 1,746.7 1,748.6 1,773.9 1,789.3 1,798.9 1,818.1 1,826.9 1,827.7 1,807.9 1,804.2 50 Large time 310.5 301.0 299.5 300.9 301.7 302.5 305.0 306.6 305.2 306.3 307.3 306.9 51 Other 1,353.5 1,428.8 1,447.1 1,447.8 1,472.2 1,486.8 1,493.9 1,511.5 1,521.7 1,521.4 1,500.6 1,497.3 52 Borrowings 375.6 387.9 389.8 393.8 408.6 425.6 429.5 429.4 425.0 426.0 433.1 431.3 53 From banks in the U.S 168.6 169.8 170.8 174.1 182.5 187.1 186.9 185.0 184.8 183.1 186.8 184.6 54 From others 207.0 218.1 218.9 219.7 226.2 238.4 242.5 244.4 240.2 242.9 246.3 246.7 55 Net due to related foreign offices 10.4 11.6 11.7 9.8 8.5 8.6 12.3 11.3 12.2 14.1 9.3 9.2 56 Other liabilities 64.4 74.2 75.2 75.4 78.7 80.7 81.7 83.9 83.5 85.0 84.5 83.0 57 Total liabilities 2,418.5 2,505.9 2,522.5 2,535.2 2,572.7 2,607.8 2,635.8 2,659.3 2,651.5 2,663.7 2,648.5 2,667.8 58 Residual (assets less liabilities)7 112.4 131.8 134.0 134.5 140.4 143.1 147.3 152.3 150.8 155.1 153.2 150.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • February 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 2001 2002 2002 Nov.1" May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 6 Nov. 13 Nov. 20 Nov. 27 Seasonally adjusted Assets 1 Bank credit 599.8 595.7 605.6 614.2 620.8 617.6 608.5 620.7 614.6 623.3 622.5 622.9 2 Securities in bank credit 240.5 231.1 238.3 241.2 250.0 246.6 240.2 248.9 249.5 256.2 248.2 243.2 3 U.S. government securities 84.0 73.4 76.1 76.4 81.8 86.2 86.2 92.8 91.9 94.1 93.9 92.0 4 Other securities 156.5 157.7 162.2 164.8 168.1 160.4 154.0 156.1 157.5 162.0 154.3 151.2 5 Loans and leases in bank credit2 .... 359.3 364.6 367.3 373.0 370.8 371.0 368.3 371.8 365.1 367.1 374.2 379.8 6 Commercial and industrial 196.0 196.7 193.1 191.2 189.9 185.5 181.2 179.1 179.6 177.8 178.4 179.8 7 Real estate 17.7 18.1 18.4 18.8 18.8 19.0 19.5 19.8 20.0 20.1 19.9 19.6 8 Security3 77.6 80.3 85.5 90.8 90.4 94.5 96.6 105.1 97.3 100.8 108.5 112.3 y Other loans and leases 68.0 69.5 70.3 72.1 71.7 72.0 70.9 67.8 68.2 68.5 67.4 68.1 10 Interbank loans 25.2 23.4 20.2 17.5 18.5 21.8 25.4 26.6 25.0 27.8 28.2 25.1 11 Cash assets4 38.4 45.3 45.5 46.0 46.5 46.0 45.3 41.0 42.3 41.2 39.7 41.3 12 Other assets5 36.0 26.3 27.8 29.4 29.0 28.1 33.1 38.1 39.3 38.3 38.2 36.9 13 Total assets6 698.9 690.4 698.8 706.8 714.4 713.1 711.9 726.0 720.9 730.2 728.2 725.8 Liabilities 14 Deposits 429.7 505.1 505.2 498.9 495.1 486.0 466.0 448.4 447.5 450.0 454.5 443.8 IS Transaction 10.8 10.6 10.3 9.9 10.1 10.1 9.8 9.5 9.6 9.7 9.1 9.5 16 Nontransaction 418.9 494.6 494.9 489.0 485.0 475.9 456.2 439.0 438.0 440.3 445.4 434.3 17 Borrowings 208.7 189.4 192.9 201.3 213.8 223.3 229.5 254.6 250.9 257.4 246.9 262.7 18 From banks in the U.S 23.6 21.0 21.3 20.8 21.6 22.7 23.1 25.5 25.4 20.9 23.9 30.2 19 From others 185.0 168.4 171.6 180.5 192.1 200.6 206.4 229.1 225.5 236.5 222.9 232.5 20 Net due to related foreign offices -19.9 -90.9 -86.1 -81.8 -85.6 -83.8 -72.6 -74.9 -68.0 -79.7 -71.9 -79.8 21 Other liabilities 81.9 76.5 85.5 90.9 96.8 92.2 96.9 99.1 102.9 106.2 94.8 93.1 22 Total liabilities 700.3 680.1 697.5 709.3 720.0 717.7 719.8 727.2 733.4 734.0 724.4 719.9 23 Residual (assets less liabilities)7 -1.4 10.3 1.3 -2.5 -5.6 -4.6 -7.9 -1.2 -12.5 -3.8 3.8 5.9 Not seasonally adjusted Assets 24 Bank credit 602.5 591.8 602.6 608.1 614.6 614.3 608.5 623.5 620.6 627.5 620.2 626.6 25 Securities in bank credit 240.5 231.1 238.3 241.2 250.0 246.6 240.2 248.9 249.5 256.2 248.2 243.2 26 U.S. government securities 84.0 73.4 76.1 76.4 81.8 86.2 86.2 92.8 91.9 94.1 93.9 92.0 27 Trading account 14.9 10.1 10.4 10.7 13.0 14.6 14.9 20.2 19.8 20.6 21.0 19.6 28 Investment account 69.0 63.3 65.7 65.8 68.8 71.7 71.3 72.7 72.2 73.5 72.9 72.4 29 Other securities 156.5 157.7 162.2 164.8 168.1 160.4 154.0 156.1 157.5 162.0 154.3 151.2 30 Trading account 105.0 99.0 103.5 108.4 109.8 103.5 98.5 99.3 101.3 105.2 97.1 95.5 31 Investment account 51.6 58.7 58.7 56.4 58.4 56.8 55.5 56.8 56.2 56.8 57.2 55.7 32 Loans and leases in bank credit2 .... 362.0 360.7 364.3 366.9 364.6 367.7 368.3 374.6 371.2 371.3 371.9 383.4 33 Commercial and industrial 197.6 194.4 191.9 189.9 188.3 185.4 181.9 180.6 181.6 179.2 180.1 181.1 34 Real estate 17.7 18.1 18.4 18.8 18.8 19.0 19.5 19.8 20.0 20.1 19.9 19.6 35 Security3 78.5 79.1 84.0 87.4 87.1 91.7 96.7 106.4 101.5 103.7 104.5 114.5 36 Other loans and leases 68.1 69.0 70.0 70.8 70.4 71.6 70.1 67.8 68.1 68.3 67.4 68.2 37 Interbank loans 25.2 23.4 20.2 17.5 18.5 21.8 25.4 26.6 25.0 27.8 28.2 25.1 38 Cash assets4 40.7 43.8 43.5 44.1 45.1 46.0 46.3 43.4 44.1 44.0 42.2 43.8 39 Other assets5 35.7 26.4 26.6 28.3 28.6 28.6 32.5 37.9 38.8 37.7 37.7 37.2 40 Total assets6 703.7 685.0 692.6 697.7 706.4 710.3 712.2 731.0 728.2 736.6 727.7 732.3 Liabilities 41 Deposits 433.2 510.2 503.4 489.8 480.6 474.0 458.6 452.0 446.4 452.7 457.9 451.4 42 Transaction 11.0 10.2 10.1 9.8 9.8 10.3 9.9 9.6 9.7 9.9 9.3 9.7 43 Nontransaction 422.2 500.0 493.3 480.0 470.8 463.7 448.7 442.4 436.7 442.8 448.6 441.7 44 Borrowings 208.7 189.4 192.9 201.3 213.8 223.3 229.5 254.6 250.9 257.4 246.9 262.7 45 From banks in the U.S 23.6 21.0 21.3 20.8 21.6 22.7 23.1 25.5 25.4 20.9 23.9 30.2 46 From others 185.0 168.4 171.6 180.5 192.1 200.6 206.4 229.1 225.5 236.5 222.9 232.5 47 Net due to related foreign offices -21.3 -91.0 -88.8 -85.8 -87.6 -82.8 -73.9 -76.0 -71.6 -80.8 -73.1 -78.0 48 Other liabilities 81.3 76.4 84.1 88.7 95.6 92.8 96.1 98.4 100.6 105.4 94.1 94.2 49 Total liabilities 701.8 685.0 691.6 694.0 702.4 707.3 710.3 729.0 726.2 734.7 725.8 730.3 50 Residual (assets less liabilities)7 1.8 -.1 1.0 3.7 3.9 3.0 1.9 2.0 2.0 2.0 2.0 2.0 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2001 2002 2002 Nov. May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 6 Nov. 13 Nov. 20 Nov. 27 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 106.0 80.8 92.9 105.8 112.3 119.1 110.9 117.1 119.2 130.2 115.4 108.5 2 Revaluation losses on off-balancesheet items8 86.5 61.7 75.2 89.2 93.7 100.0 93.7 100.6 104.0 115.0 100.3 88.2 3 Mortgage-backed securities9 289.7r 306.2 312.6 320.0 338.1 343.5 354.8 370.0 373.1 369.5 365.7 368.7 4 Pass-through 204.8 210.4 224.6 236.3 253.4 254.7 261.3 274.2 277.0 273.4 271.8 273.7 5 CMO, REMIC, and other 85.0 95.8 88.0 83.7 84.8 88.9 93.5 95.8 96.1 96.1 93.9 95.0 6 Net unrealized gains (losses) on available-for-sale securities10 9.7 4.3 6.7 8.3 9.1 11.5 12.5 11.8 11.8 12.6 10.9 12.6 7 Off-shore credit to U.S. residents" .... 19.2 19.6 19.6 19.1 19.0 19.0 18.4 18.5 18.3 18.7 17.8 19.2 8 Securitized consumer loans12 103.3' 98.5 102.5 106.3 104.4 103.6 105.0 108.0 106.6 107.3 108.2 109.2 9 Credit cards and related plans 91.8' 87.0 90.3 91.2 89.3 88.9 90.7 93.5 92.0 92.8 93.8 94.8 10 Other 11.5 11.5 12.2 15.1 15.1 14.7 14.3 14.5 14.6 14.5 14.5 14.4 11 Securitized business loans12 20.6 17.1 16.9 17.1 17.8 17.7 17.5 17.1 17.3 17.3 17.2 16.7 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities9 264.2 298.6 299.1 297.3 298.9 304.3 306.6 308.5 309.5 308.6 307.8 307.6 13 Securitized consumer loans12 238.3' 242.8 243.9 239.9 238.3 235.9 235.0 236.6 237.1 237.5 235.7 236.1 14 Credit cards and related plans 229.6' 235.2 236.9 236.3 235.2 232.9 231.8 233.4 233.9 234.3 232.4 232.9 15 Other 8.7 7.6 7.0 3.6 3.1 3.0 3.3 3.2 3.2 3.2 3.3 3.2 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 61.5' 50.0 55.2 61.5 65.1 62.0 58.9 63.0 63.3 68.2 62.0 59.6 17 Revaluation losses on off-balancesheet items8 54.1 42.8 49.3 57.4 64.8 61.2 58.5 60.4 61.4 66.2 58.9 56.1 18 Securitized business loans12 13.3 10.5 9.9 9.4 9.1 8.1 7.6 7.3 7.4 7.4 7.4 7.1 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table ratio procedure is used to adjust past levels. 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer in the United States, all of which are included in "Interbank loans." being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of Columbia: 7. This balancing item is not intended as a measure of equity capital for use in capital domestically chartered commercial banks that submit a weekly report of condition (large adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the domestic); other domestically chartered commercial banks (small domestic); branches and seasonal patterns estimated for total assets and total liabilities. agencies of foreign banks, and Edge Act and agreement corporations (foreign-related institu- 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity tions). Excludes International Banking Facilities. Data are Wednesday values or pro rata and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. averages of Wednesday values. Large domestic banks constitute a universe; data for small 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. domestic banks and foreign-related institutions are estimates based on weekly samples and on government-sponsored enterprises, and private entities. quarter-end condition reports. Data are adjusted for breaks caused by reclassifications of 10. Difference between fair value and historical cost for securities classified as availableassets and liabilities. for-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are The data for large and small domestic banks presented on pp. A17-19 are adjusted to restated to include an estimate of these tax effects. remove the estimated effects of mergers between these two groups. The adjustment for 11. Mainly commercial and industrial loans but also includes an unknown amount of credit mergers changes past levels to make them comparable with current levels. Estimated extended to other than nonfinancial businesses. quantities of balance sheet items acquired in mergers are removed from past data for the bank 12. Total amount outstanding. group that contained the acquired bank and put into past data for the group containing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic NonfinancialS tatistics • February 2003 1.32 COMMERCIAL PAPER OUTSTANDING Millions of dollars, seasonally adjusted, end of period Year ending December 2002 IItteemm 1997 1998 1999 2000 2001 May June July Aug. Sept. Oct. 1 All issuers 966,699 1,16333 1,403,023 1,615,341 1,438,764 1,366,259 1,327,569 1,345,922 1,375,414 1,338,119 1,350,182 Financial companies' 2 Dealer-placed paper, total2 513,307 614,142 786,643 973,060 989,364 989,957 986,489 959,798 863,215 856,037 973,150 3 Directly placed paper, total3 252,536 322,030 337,240 298,848 224,553 199,572 169,193 206,942 343,733 322,729 219,581 4 Nonfinancial companies4 200,857 227,132 279,140 343,433 224,847 176,730 171,887 179,182 168,466 159,353 157,451 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Date of change Rate Period Av r e a r t a e ge Av r e a r t a e ge Av r e a r t a e ge 2000—Jan. 1 8.50 2000 9.23 2001—Jan. 9.05 2002—Jan. 4.75 Feb. 3 8.75 2001 6.91 Feb. 8.50 Feb. 4.75 Mar. 22 9.00 2002 4.67 Mar. 8.32 Mar. 4.75 May 17 9.50 Apr. 7.80 Apr. 4.75 2000—Jan 8.50 May 7.24 May 4.75 2001—Jan. 4 9.00 Feb 8.73 June 6.98 June 4.75 Feb. 1 8.50 Mar. 8.83 July 6.75 July 4.75 Mar. 21 8.00 Apr. 9.00 Aug. 6.67 Aug. 4.75 Apr. 19 7.50 May 9.24 Sept. 6.28 Sept. 4.75 May 16 7.00 June 9.50 Oct. 5.53 Oct. 4.75 June 28 6.75 July 9.50 Nov. 5.10 Nov. 4.35 Aug. 22 6.50 Aug 9.50 Dec. 4.84 Dec. 4.25 Sept. 18 6.00 Sept 9.50 Oct. 3 5.50 Oct 9.50 Nov. 7 5.00 Nov 9.50 Dec. 12 4.75 Dec 9.50 2002—Nov. 7 4.25 1. The prime rate is one of several base rates that banks use to price short-term business Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) loans. The table shows the date on which a new rate came to be the predominant one quoted monthly statistical releases. For ordering address, see inside front cover. by a majority of the twenty-five largest banks by asset size, based on the most recent Call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 2002 2002, week ending IItteemm 11999999 22000000 22000011 Aug. Sept. Oct. Nov. Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 MONEY MARKET INSTRUMENTS 4.97 6.24 3.88 1.74 1.75 1.75 1.34 1.79 1.70 1.21 1.28 1.27 nn..aa.. n.a. n.a. Commercial paper3 5-6 Nonfinancial 5.09 6.27 3.78 1.72 1.73 1.72 1.34 11..6688 1.43 1.28 1.28 1.30 5.14 6.29 3.68 1.70 1.72 1.70 1.35 1.64 1.40 1.29 1.30 1.33 5.18 6.31 3.65 1.70 1.72 1.70 1.36 1.63 1.42 1.30 1.33 1.33 Financial 5.11 6.28 3.80 1.72 1.74 1.73 1.34 1.69 1.44 1.30 1.28 1.25 5.16 6.30 3.71 1.72 1.74 1.72 1.37 1.66 1.44 1.31 1.32 1.33 5.22 6.33 3.65 1.71 1.74 1.71 1.37 1.65 1.44 1.32 1.33 1.34 Certificates of deposit, secondary market3,7 5.19 6.35 3.84 1.76 1.78 1.77 1.39 1.70 1.47 1.33 1.34 1.35 5.33 6.46 3.71 1.73 1.76 1.73 1.39 1.65 1.46 1.34 1.36 1.36 5.46 6.59 3.66 1.72 1.74 1.69 1.40 1.59 1.45 1.36 1.37 1.39 5.31 6.45 3.70 1.72 1.75 1.73 1.39 1.66 1.46 1.34 1.35 1.37 U.S. Treasury bills Secondary market3-5 2.43 1.66 1.65 1.60 1.24 1.51 1.28 1.20 1.21 1.24 4.64 5.82 3.40 1.62 1.63 1.58 1.23 1.47 1.28 1.20 1.20 1.21 44..7755 55..9900 33..3344 11..6600 1.60 1.56 1.27 1.43 1.30 1.24 1.25 1.27 U.S. TREASURY NOTES AND BONDS Constant maturities9 5.08 6.11 3.49 1.76 1.72 1.65 1.49 1.51 1.46 1.46 1.51 1.55 5.43 6.26 3.83 2.13 2.00 1.91 1.92 1.77 1.84 1.84 1.99 2.07 18 3-year 5.49 6.22 4.09 2.52 2.32 2.25 2.32 2.14 2.21 2.21 2.39 2.50 5.55 6.16 4.56 3.29 2.94 2.95 3.05 2.90 2.95 2.93 3.13 3.26 5.79 6.20 4.88 3.88 3.50 3.54 3.64 3.54 3.55 3.51 3.71 3.84 21 10-year 5.65 6.03 5.02 4.26 3.87 3.94 4.05 4.00 4.00 3.94 4.08 4.19 6.20 6.23 5.63 5.19 4.87 5.00 5.04 5.07 5.03 4.94 5.04 5.14 Treasury long-term average10 " nn..aa.. nn..aa.. nn..aa.. 55..2233 4.90 55..0077 5.10 5.16 5.12 55..0000 5.08 5.18 STATE AND LOCAL NOTES AND BONDS Moody's series12 24 Aaa 5.28 5.58 4.99 4.78 4.58 4.66 4.77 4.71 4.69 4.72 4.77 4.88 25 Baa 5.70 6.19 5.75 5.53 5.31 5.47 5.62 5.50 5.49 5.55 5.67 5.75 55..4433 55..7711 55..1155 44..9955 44..7744 44..8888 44..9955 44..9955 44..9911 44..9900 5.00 5.00 CORPORATE BONDS 7.45 7.98 7.49 6.93 6.73 6.93 6.88 7.00 6.93 6.81 6.85 6.91 Rating group 28 Aaa15 7.05 7.62 7.08 6.37 6.15 6.32 6.31 6.39 6.32 6.22 6.30 6.37 29 Aa 7.36 7.83 7.26 6.84 6.63 6.73 6.71 6.78 6.72 6.64 6.70 6.76 30 A 7.53 8.11 7.67 6.95 6.76 6.95 6.89 7.02 6.95 6.82 6.85 6.90 31 Baa 7.88 8.37 7.95 7.58 7.40 7.73 7.62 7.81 7.71 7.56 7.56 7.60 MEMO Dividend-price ratio16 11..2255 11..1155 11..3322 11..7722 1.80 1.86 1.73 1.77 1.71 1.79 1.73 1.69 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly 8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for statistical release. For ordering address, see inside front cover. indication purposes only. 1. The daily effective federal funds rate is a weighted average of rates on trades through 9. Yields on actively traded issues adjusted to constant maturities. New York brokers. 10. Based on the unweighted average of the bid yields for all Treasury fixed-coupon 2. Weekly figures are averages of seven calendar days, ending on Wednesday of the securities with remaining terms to maturity of 25 years and over. current week; monthly figures include each calendar day in the month. 11. A factor for adjusting the daily long-term average in order to estimate a 30-year rate 3. Annualized using a 360-day year or bank interest. can be found at http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ 4. The rate charged for primary credit under an amendment to the Board's Regulation A, ltcompositeindex.html. which became effective January 9, 2003. This rate replaces that for adjustment credit, which 12. General obligation bonds based on Thursday figures; Moody's Investors Service. was discontinued after January 8, 2003. For further information, see: http:// 13. State and local government general obligation bonds maturing in twenty years are used www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate is that in compiling this index. The twenty-bond index has a rating roughly equivalent to Moody's reported for the Federal Reserve Bank of New York. Historical series for the rate on A1 rating. Based on Thursday figures. adjustment credit is available at: http://www.federalreserve.gov/releases.gov/releases/hl5/ 14. Daily figures are averages of Aaa, Aa, A, and Baa yields from Moody's Investors data.htm. Service. Based on yields to maturity on selected long-term bonds. 5. Quoted on a discount basis. 15. Effective December 7, 2001, the Moody's Aaa yield includes yields only for industrial 6. Interest rates interpolated from data on certain commercial paper trades settled by the firms. Prior to December 7, 2001, the Aaa yield represented both utilities and industrial. Depository Trust Company. The trades represent sales of commercial paper by dealers or 16. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web the price index. pages (http://www.federalreserve.gov/releases/cp) for more information. SOURCE: U.S. Department of the Treasury. 7. An average of dealer offering rates on nationally traded certificates of deposit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic NonfinancialS tatistics • February 2003 1.36 STOCK MARKET Selected Statistics 2002 IInnddiiccaattoorr 11999999 22000000 22000011 Mar. Apr. May June July Aug. Sept. Oct. Nov. Prices and trading volume (averages of daily figures) CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 ======= 55555550000000))))))) 619.52 643.71 606.03 600.74 587.58 575.75 544.36 486.11 491.84 471.04 459.88 482.79 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 775.29 809.40 749.46 751.79 732.71 718.12 677.58 603.04 611.34 589.14 574.45 597.75 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 491.62 414.73 444.45 490.51 470.00 459.55 449.42 416.07 409.96 388.19 383.41 405.03 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 284.82 478.99 377.72 316.25 300.57 287.10 265.21 230.21 225.52 210.76 207.83 229.41 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 530.97 552.48 596.61 609.72 610.24 603.15 577.05 524.01 533.60 506.05 494.06 523.50 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111———————44444443333333 ======= 11111110000000)))))))''''''' 1,327.33 1,427.22 1,194.18 1,153.79 1,112.03 1,079.27 1,014.05 903.59 912.55 867.81 854.63 909.93 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 ------- 55555550000000)))))))2222222 770.90 922.22 879.08 891.08 915.09 935.10 911.59 840.76 843.89 852.03 807.38 820.62 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 799,554 1,026,867 1,216,529 1,321,351 1,280,714 1,215,786 1,539,282 1,848,962 1,317,105 1,370,143 1,619,896 1,427,254 9999999 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 32,629 51,437 68,074 56,375 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Customer financing (millions of dollars, end-of-period balances) 11111110000000 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrr-------dddddddeeeeeeeaaaaaaallllllleeeeeeerrrrrrrsssssss3333333 228,530 198,790 150,450 149,370 150,940 150,860 146,270 136,160 132,800 130,210 130,570 133,060 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 55,130 100,680 101,640 93,700 92,140 92,950 95,830 98,080 95,400 98,630 96,620 91,240 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 79,070 84,400 78,040 69,790 68,540 66,120 68,280 68,860 63,700 67,550 66,780 67,380 Margin requirements (percent of market value and effective date)6 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 11111113333333 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn ssssssstttttttoooooooccccccckkkkkkksssssss 70 80 65 55 65 50 11111114444444 CCCCCCCooooooonnnnnnnvvvvvvveeeeeeerrrrrrrtttttttiiiiiiibbbbbbbllllllleeeeeee bbbbbbbooooooonnnnnnndddddddsssssss 50 60 50 50 50 50 11111115555555 SSSSSSShhhhhhhooooooorrrrrrrttttttt sssssssaaaaaaallllllleeeeeeesssssss 70 80 65 55 65 50 1. In July 1976 a financial group, composed of banks and insurance companies, was added 6. Margin requirements, stated in regulations adopted by the Board of Governors pursuant to the group of stocks on which the index is based. The index is now based on 400 industrial to the Securities Exchange Act of 1934, limit the amount of credit that can be used to stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and purchase and carry "margin securities" (as defined in the regulations) when such credit is 40 financial. collateralized by securities. Margin requirements on securities are the difference between the 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting market value (100 percent) and the maximum loan value of collateral as prescribed by the previous readings in half. Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, 3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971. included credit extended against stocks, convertible bonds, stocks acquired through the On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the exercise of subscription rights, corporate bonds, and government securities. Separate report- initial margin required for writing options on securities, setting it at 30 percent of the current ing of data for margin stocks, convertible bonds, and subscription issues was discontinued in market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the April 1984. required initial margin, allowing it to be the same as the option maintenance margin required 4. Free credit balances are amounts in accounts with no unfulfilled commitments to by the appropriate exchange or self-regulatory organization; such maintenance margin rules brokers and are subject to withdrawal by customers on demand. must be approved by the Securities and Exchange Commission. 5. Series initiated in June 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 2000 2001 2002 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 5,701.9 5,803.5 5,800.6 5,753.9 5,834.5 5,970.3 6,032.4 6,153.3 6,255.4 2 Public debt securities 5,674.2 5,662.2 5,773.7 5,726.8 5,807.5 5,943.4 6,006.0 6,126.5 6,228.2 3 Held by public 3,438.5 3,527.4 3,434.4 3,274.2 3,338.7 3,393.8 3,443.7 3,463.5 3,552.6 4 Held by agencies 2,235.7 2,248.7 2,339.4 2,452.6 2,468.8 2,549.7 2,562.4 2,662.9 2,675.6 5 Agency securities 27.7 27.4 26.8 27.1 27.0 26.8 26.4 26.8 27.2 6 Held by public 27.6 27.3 26.8 27.1 27.0 26.8 26.4 26.8 27.2 7 Held by agencies .1 .1 .1 .0 .0 .0 .0 .0 .0 8 Debt subject to statutory limit 5,591.6 5,580.5 5,692.5 5,645.0 5,732.6 5,871.4 5,935.1 6,058.3 6,161.4 9 Public debt securities 5,591.4 5,580.2 5,692.3 5,644.8 5,732.4 5,871.2 5,935.0 6,058.1 6,161.1 10 Other debt1 .2 .2 .2 .2 .2 .3 .2 .2 .3 MEMO 11 Statutory debt limit 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 6,400.0 6,400.0 1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District of Colum- United States and Monthly Treasury Statement. bia stadium bonds. 1.41 GROSS PUBLIC DEBT OF US. TREASURY Types and Ownership Billions of dollars, end of period 2001 2002 TTyyppee aanndd hhoollddeerr 11999988 11999999 22000000 22000011 Q4 Ql Q2 Q3 1 Total gross public debt 5,614.2 5,776.1 5,662.2 5,943.4 5,943.4 6,006.0 6,126.5 6,228.2 By type 2 Interest-bearing 5,605.4 5,766.1 5,618.1 5,930.8 5,930.8 5,962.2 6,087.0 6,216.3 3 Marketable 3,355.5 3,281.0 2,966.9 2,982.9 2,982.9 3,003.3 3,024.8 3,136.6 4 Bills 691.0 737.1 646.9 811.3 811.3 834.4 822.5 868.3 5 Notes 1,960.7 1,784.5 1,557.3 1,413.9 1,413.9 1,411.7 1,446.9 1,521.5 6 Bonds 621.2 643.7 626.5 602.7 602.7 596.7 592.9 592.9 7 Inflation-indexed notes and bonds' 67.6 100.7 121.2 140.1 140.1 145.6 147.5 138.9 8 Nonmarketable2 2,249.9 2,485.1 2,651.2 2,947.9 2,947.9 2,958.9 3,062.2 3,079.6 9 State and local government series 165.3 165.7 151.0 146.3 146.3 141.1 142.8 144.3 10 Foreign issues3 34.3 31.3 27.2 15.4 15.4 14.6 13.3 12.5 11 Government 34.3 31.3 27.2 15.4 15.4 14.6 13.3 12.5 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 180.3 179.4 176.9 181.5 181.5 183.6 184.8 185.6 14 Government account series4 1,840.0 2,078.7 2,266.1 2,574.8 2,574.8 2,589.7 2,691.4 2,707.3 15 Non-interest-bearing 8.8 10.0 44.2 12.7 12.7 43.8 39.5 12.0 By holder5 16 U.S. Treasury and other federal agencies and trust funds 1,828.1 2,064.2 2,270.1 2,572.2 2,572.2 2,581.4 2,686.0 2,701.3 17 Federal Reserve Banks6 452.1 478.0 511.7 551.7 551.7 575.4 590.7 604.2 18 Private investors 3,334.0 3,233.9 2,880.4 2,819.5 2,819.5 2,849.2 2,849.8 2,924.8 19 Depository institutions 237.4 248.7 201.5 181.5 181.5 187.6 204.4 210.5 20 Mutual funds 253.9 228.6 220.8 257.5 257.5 264.9 250.0 252.4 21 Insurance companies 141.7 123.4 110.2 105.7 105.7 108.4 110.3 115.4 22 State and local treasuries7 269.3 266.8 236.2 256.5 256.5 261.2 271.7 269.4 Individuals 23 Savings bonds 186.6 186.4 184.8 190.3 190.3 191.9 192.7 193.3 24 Pension funds 330.2 321.0 304.1 281.6 281.6 293.3 286.0 283.4 25 Private 112.5 109.8 108.4 104.2 104.2 106.3 108.8 110.9 26 State and Local 217.7 211.2 195.7 177.4 177.4 187.0 177.2 172.5 27 Foreign and international8 1,278.7 1,268.7 1,034.2 1,053.1 1,053.1 1,055.7 1,071.3 1,133.7 28 Other miscellaneous investors7-9 636.3 589.9 587.7 494.1 494.1 487.7 451.9 n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds. 1997. Excludes Treasury securities held under repurchase agreements in custody accounts at the 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Federal Reserve Bank of New York. tion, depository bonds, retirement plan bonds, and individual retirement bonds. 9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- personal trusts and estates, corporate and noncorporate businesses, and other investors. rency held by foreigners. SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. Public Debt of the United States; data by holder, Federal Reserve Board of Governors, Flow 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin, holdings; data for other groups are Treasury estimates. unless otherwise noted. 6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin table 1.18. 7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable federal securities was removed from "Other miscellaneous investors" and added to "State and local treasuries." The data shown here have been revised accordingly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 DomesticN onfinancial Statistics • February 2003 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 2002 2002, week ending Aug. Sept. Oct. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Nov. 27 By type of security 1 U.S. Treasury bills 42,257 46,861 44,804 48,782 46,133 46,096 37,637 47,376 48,003 54,630 43,156 48,074 Treasury coupon securities by maturity 2 Three years or less 130,594 133,211 133,181 129,102 110,546 114,032 161,122 144,196 136,338 156,502 111177,,113333 159,943 3 More than three but less than or equal to six years 109,759 106,075 114,643 117,689 97,410 133,110 115,010 109,668 143,887 121,503 122,395 95,173 4 More than six but less than or equal to eleven years 89,647 83,783 99,139 97,184 82,041 110,480 111,082 92,675 115,775 118,456 90,931 78,117 5 More than eleven 19,554 22,090 21,405 23,326 20,213 24,985 20,061 20,452 20,685 26,370 21,121 16,598 6 Inflation-indexed2 2,042 2,439 4,122 2,472 5,454 5,235 3,086 3,737 3,410 2,408 2,531 2,325 Federal agency and governmentsponsored enterprises 7 Discount notes 50,486 49,573 50,271 55,793 49,593 50,278 49,441 48,678 54,698 55,383 52,351 45,143 Coupon securities by maturity 8 Three years or less 12,894 11,389 11,841 9,523 8,984 13,766 11,005 14,536 13,776 15,684 1122,,886611 10,072 9 More than three years but less than or equal to six years 8,920 10,317 9,301 11,540 8,020 12,815 9,633 6,829 7,877 8,577 11,565 8,094 10 More than six years but less than or equal to eleven years .... 7,018 7,337 6,776 8,538 7,478 9,933 5,441 4,228 6,523 5,178 9,563 7,661 11 More than eleven years 1,081 1,147 1,325 1,456 762 2,094 1,737 831 1,202 1,378 1,031 1,377 12 Mortgage-backed 158,250 186,023 191,937 194,705 236,630 231,723 180,011 131,645 164,887 287,422 211,256 131,296 Corporate securities 13 One year or less 105,549 106,097 101,115 100,334 92,462 109,605 107,194 95,235 110,984 119,849 120,220 101,266 14 More than one year 15,327 18,433 16,294 18,063 15,026 15,582 15,010 17,405 22,812 19,890 22,993 24,053 By type of counterparty With interdealer broker 15 U.S. Treasury 181,302 184,949 197,089 195,307 168,517 205,589 215,950 194,377 228,772 228,274 186,794 192,175 16 Federal agency and governmentsponsored enterprises 10,840 10,217 10,473 10,594 9,166 11,081 10,548 11,031 11,172 10,763 10,705 8,175 17 Mortgage-backed 48,029 58,896 55,734 63,318 69,669 63,387 48,751 42,141 43,165 71,907 52,025 34,248 18 Corporate 308 373 387 441 406 293 375 431 394 307 562 428 With other 19 U.S. Treasury 212,551 209,510 220,204 223,249 193,281 228,349 232,047 223,726 239,325 251,594 210,472 208,055 20 Federal agency and governmentsponsored enterprises 69,560 69,548 69,041 76,258 65,670 77,805 66,710 64,073 72,904 75,437 76,666 64,172 21 Mortgage-backed 110,221 127,127 136,203 131,387 166,961 168,336 131,260 89,504 121,722 215,515 159,231 97,048 22 Corporate 120,568 124,156 117,022 117,956 107,082 124,894 121,828 112,208 133,403 139,431 142,651 124,892 NOTE. Major changes in the report form filed by primary dealers induced a break in the backed, and corporate securities scheduled for immediate and forward delivery, as well as all dealer data series as of the week ending July 4, 2001. Current weekly data may be found at the U.S. government securities traded on a when-issued basis between the announcement and Federal Reserve Bank of New York web site (http:www.newyorkfed.org/pihome/statistics) issue date. Data do not include transactions under repurchase and reverse repurchase (resale) under the Primary Dealer heading. agreements. Averages are based on the number of trading days in the week. 1. The figures represent purchases and sales in the market by the primary U.S. government 2. Outright Treasury inflation-indexed securities (TIIS) transactions are reported at princisecurities dealers reporting to the Federal Reserve Bank of New York. Outright transactions pal value, excluding accrued interest, where principal value reflects the original issuance par include all U.S. government, federal agency, government-sponsored enterprise, mortgage- amount (unadjusted for inflation) times the price times the index ratio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2002 2002, week ending IItteemm,, bbyy ttyyppee ooff sseeccuurriittyy Aug. Sept. Oct. Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Nov. 6 Nov. 13 Nov. 20 Net outright positions2 1 U.S. Treasury bills 11,225 8,379 12,301 6,425 4,735 9,987 15,831 19,761 16,287 25,352 25,046 Treasury coupon securities by maturity 2 Three years or less -22,358 -17,680 -25,208 -23,319 -26,712 -33,528 -22,182 -19,784 -19,378 --2277,,226688 --2277,,554455 3 More than three years but less than or equal to six years -31,298 -35,388 -35,886 -34,548 -36,408 -32,265 -34,742 -41,066 -31,991 -28,074 -31,684 4 More than six but less than or equal to eleven years -10,829 -15,420 -13,591 -15,273 -18,442 -12,612 -11,724 -11,316 -12,125 -11,665 -17,696 5 More than eleven 9,542 9,083 6,885 8,257 7,216 8,455 7,949 4,297 1,489 1,131 1,607 6 Inflation-indexed 1,615 1,239 2,260 1,109 2,554 3,071 3,466 566 228 720 927 Federal agency and governmentsponsored enterprises 7 Discount notes 49,090 49,345 51,159 53,403 51,373 49,694 50,665 52,944 46,402 57,549 46,692 Coupon securities, by maturity 8 Three years or less 14,220 14,031 16,704 15,165 17,626 17,312 14,869 17,635 15,400 16,319 17,292 9 More than three years but less than or equal to six years 3,172 1,826 785 1,324 1,276 1,325 1,068 -320 -1,764 -1,279 -307 10 More than six but less than or equal to eleven years 2,805 2,242 2,717 2,850 3,637 2,860 2,405 2,217 690 1,793 2,954 11 More than eleven 2,197 2,303 2,252 2,259 1,814 2,235 2,381 2,482 2,898 3,074 3,309 12 Mortgage-backed 19,408 16,667 15,565 12,181 6,391 37,239 10,876 8,997 13,629 2,417 11,891 Corporate securities 13 One year or less 25,138 23,363 24,010 23,169 20,855 27,145 23,943 24,644 21,861 27,588 22,072 14 More than one year 47,631 48,908 51,861 53,129 55,857 54,307 48,299 48,561 52,254 46,335 52,631 Financing3 Securities in, U.S. Treasury 15 Overnight and continuing 621,725 627,852 619,723 634,437 649,969 629,323 602,931 589,729 638,874 623,270 649,316 16 Term 851,220 904,116 905,616 831,371 884,922 892,184 907,593 954,104 939,740 975,976 880,011 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 152,003 156,069 157,351 158,294 158,970 159,739 154,666 156,398 152,871 160,910 144,090 18 Term 297,317 306,858 314,993 311,400 328,501 301,079 309,992 321,660 313,358 327,393 307,624 Mortgage-backed securities 19 Overnight and continuing 43,387 44,642 41,613 39,116 41,306 35,322 45,391 42,430 60,626 55,376 48,869 20 Term 272,722 278,235 280,317 270,040 278,470 276,023 288,415 283,536 264,648 275,969 281,206 Corporate securities 21 Overnight and continuing 51,730 50,351 49,081 48,930 48,760 49,215 49,683 48,740 48,855 49,599 51,008 22 Term 23,156 25,606 26,306 25,747 26,196 26,153 26,326 26,681 26,499 26,621 26,175 MEMO Reverse repurchase agreements 23 Overnight and continuing 461,682 477,054 465,644 480,515 481,214 475,331 447,086 450,481 495,162 478,104 479,639 24 Term 1,296,922 1,363,411 1,366,558 1,284,812 1,359,926 1,334,015 1,372,666 1,419,579 1,390,367 1,451,324 1,348,935 Securities out, U.S. Treasury 25 Overnight and continuing 584,373 596,372 565,825 592,224 596,345 566,545 551,031 540,078 578,135 580,756 616,134 26 Term 791,145 829,047 837,262 759,544 809,044 817,589 849,039 889,161 882,193 913,939 814,690 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 279,430 279,838 292,282 278,646 284,135 288,322 298,331 303,501 283,435 330000,,553388 227722,,554422 28 Term 225,030 237,666 235,801 241,750 251,219 224,496 229,034 236,777 235,654 249,153 239,956 Mortgage-backed securities 29 Overnight and continuing 314,045 303,749 319,058 305,561 307,956 334,464 332,450 306,332 311,270 310,033 335,515 30 Term 171,418 176,871 172,948 161,289 171,096 170,989 184,765 170,392 158,121 158,107 189,453 Corporate securities 31 Overnight and continuing 131,536 127,796 132,186 128,853 127,251 135,297 131,662 135,430 132,565 137,006 135,343 32 Term 18,074 19,734 23,097 20,011 21,437 22,818 24,299 24,791 22,574 20,808 20,297 MEMO Repurchase agreements 33 Overnight and continuing 1,148,724 1,150,894 1,147,149 1,140,786 1,146,590 1,165,697 1,155,106 1,122,791 11,,114488,,775500 1,170,074 11,,119933,,229999 34 Term 1,176,213 1,231,403 1,232,858 1,146,680 1,218,693 1,199,461 1,249,778 1,283,897 1,262,433 1,305,156 1,234,632 NOTE. Major changes in the report form filed by primary dealers included a break in many 2. Net outright positions include all U.S. government, federal agency, governmentseries as of the week ending July 4, 2001. Current weekly data may be found at the Federal sponsored enterprise, mortgage-backed, and corporate securities scheduled for immediate and Reserve Bank of New York web site (http://www.newyorkfed.org/pihome/statistics) under the forward delivery, as well as U.S. government securities traded on a when-issued basis Primary Dealer heading. between the announcement and issue date. 1. Data for positions and financing are obtained from reports submitted to the Federal 3. Figures cover financing U.S. government, federal agency, government-sponsored enter- Reserve Bank of New York by the U.S. government securities dealers on its published list of prise, mortgage-backed, and corporate securities. Financing transactions for Treasury primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar inflation-indexed securities (TIIS) are reported in actual funds paid or received, except for days of the report week are assumed to be constant. Monthly averages are based on the pledged securities. TIIS that are issued as pledged securities are reported at par value, which number of calendar days in the month. is the value of the security at original issuance (unadjusted for inflation). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • February 2003 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2002 AAggeennccyy 11999988 11999999 22000000 22000011 May June July Aug. Sept. 1 Federal and federally sponsored agencies 1,296,477 1,616,492 1,851,632 2,121,057 2,150,724 2,161,580 2,213,366 2,226,713 n.a. 2 Federal agencies 26,502 26,376 25,666 276 208 223 223 164 304 3 Defense Department1 6 6 6 6 6 6 6 6 6 4 Export-Import Bank2-3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Federal Housing Administration4 205 126 255 26,828 26,450 26,826 26,541 26,274 27,170 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Tennessee Valley Authority 26,496 26,370 25,660 270 202 217 217 158 298 9 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Federally sponsored agencies7 1,269,975 1,590,116 1,825,966 2,120,781 2,195,630r 2,207,212r 2,213,143 2,226,549 n.a. 11 Federal Home Loan Banks 382,131 529,005 594,404 623,740 640,222 643,102 651,253 659,258 668,703 12 Federal Home Loan Mortgage Corporation 287.396 360,711 426,899 565,071 601,037 601,363 604,853 603,135 623,267 13 Federal National Mortgage Association 460.291 547,619 642,700 763,500 782,000 789,000 784,020 789,900 800,300 14 Farm Credit Banks8 63,488 68,883 74,181 76,673 80,258 80,951 81,265 81,658 82,741 15 Student Loan Marketing Association9 35.399 41,988 45,375 48,350 48,900 49,600 48,500 49,500 50,800 16 Financing Corporation1"' 8.170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation" 1.261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 44,129 42,152 40,575 39,096 37,175 37,091 37,830 42,825 39,604 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Other lending14 25 Farmers Home Administration 9,500 6,665 5,275 n.a. n.a. n.a. n.a. n.a. n.a. 26 Rural Electrification Administration 14,091 14,085 13,126 13,876 14,184 14,301 14,338 13,599 14,029 27 Other 20,538 21,402 22,174 25,220 22,991 22,790 23,492 29,226 25,575 1. Consists of mortgages assumed by the Defense Department between 1957 and 1963 10. The Financing Corporation, established in August 1987 to recapitalize the Federal under family housing and homeowners assistance programs. Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987. 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 11. The Farm Credit Financial Assistance Corporation, established in January 1988 to 3. On-budget since Sept. 30, 1976. provide assistance to the Farm Credit System, undertook its first borrowing in July 1988. 4. Consists of debentures issued in payment of Federal Housing Administration insurance 12. The Resolution Funding Corporation, established by the Financial Institutions claims. Once issued, these securities may be sold privately on the securities market. Reform, Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 5. Certificates of participation issued before fiscal year 1969 by the Government National 1989. Mortgage Association acting as trustee for the Farmers Home Administration; the Department 13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations of Health, Education, and Welfare; the Department of Housing and Urban Development; the issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the Small Business Administration; and the Veterans Administration. purpose of lending to other agencies, its debt is not included in the main portion of the table to 6. Off-budget. avoid double counting. 7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes 14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans Federal Agriculture Mortgage Corporation; therefore, details do not sum to total. Some data guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally are estimated. being small. The Farmers Home Administration entry consists exclusively of agency assets, 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is whereas the Rural Electrification Administration entry consists of both agency assets and shown on line 17. guaranteed loans. 9. Before late 1982, the association obtained financing through the Federal Financing Bank (FFB). Borrowing excludes that obtained from the FFB. which is shown on line 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A29 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 2002 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11999999 22000000 22000011 oorr uussee Apr. May June July Aug. Sept. Oct. Nov. 1 A11 issues, new and refunding1 215,427 180,403 270,566 23,261 32,858 36315 25,771 28,918 27,313 40,150 33,101 By type of issue 2 General obligation 73,308 64,475 100,519 8,559 10,446 16,166 10,130 10,226 9,562 16,075 8,159 3 Revenue 142,120 115,928 170,047 14,702 22,413 20,149 15,642 18,692 17,751 24,074 24,942 By type of issuer 4 State 16,376 19,944 30,099 3,057 1,531 3,718 3,404 3,472 2,442 4,199 2,109 5 Special district or statutory authority2 152,418 111,695 179,427 15,520 23,866 27,283 16,007 20,144 19,105 29,273 25,422 6 Municipality, county, or township 46,634 39,273 61,040 4,683 7,461 5,315 6,361 5,302 5,767 6,678 5,570 7 Issues for new capital 161,065 154,257 192,161 17,115 20,663 23,727 19,189 19,392 15,022 27,718 24,384 By use of proceeds 8 Education 36,563 38,665 50,054 5,279 6,027 7,060 4,205 3,968 3,529 5,209 3,743 9 Transportation 17,394 19,730 21,411 773 1,795 3,351 3,251 4,413 1,398 1,476 1,250 10 Utilities and conservation 15,098 11,917 21,917 2,091 1,785 1,087 1,660 2,806 2,038 6,922 8,379 11 Social welfare n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Industrial aid 9,099 7,122 6,607 344 614 631 760 283 574 1,225 821 13 Other purposes 47,896 47,309 55,733 6,784 6,962 7,653 5,893 6,537 5,597 6,996 7,189 1. Par amounts of long-term issues based on date of sale. SOURCE. Securities Data Company beginning January 1990; Investment Dealer's Digest 2. Includes school districts. before then. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 2002 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999999 22000000 22000011 oorr iissssuueerr Mar. Apr. May June July Aug. Sept. Oct. 1 All issues' l,105,535r 1,079,727' 1,541,809' 176,202' 116,952' 123,894' 149,753' 68,426' 97,665' 135,176' 93,439 2 Bonds2 973,967r 944,810r 1,413,255' 163,282' 106,416' 114,932' 133,217' 63,912' 93,659' 127,881' 85,606 By type of offering 3 Sold in the United States 851,352' 822,012' 1,356,866' 145,325' 101,427' 105,070' 121,491' 60,549' 90,215' 123,449' 81,409 4 Sold abroad 122,615 122,798 56,389 17,958 4,989 9,862 11,725 3,362 3,444 4,432 4,197 MEMO 5 Private placements, domestic 24,703 18,370 8,734 0 0 4,506 3,068 0 0 65 0 By industry group 6 Nonfinancial 302,256' 258,804' 459,560' 44,129' 35,741' 19,804' 27,693' 7,624' 14,960' 19,988' 14,906 7 Financial 671,711' 686,006' 953,695' 119,154' 70,675' 95,128' 105,524' 56,288' 78,699' 107,893' 70,700 8 Stocks3 242,941 312,689 231,288 12,920 10,536 8,962 16,536 4,514 4,006 7,295 7,833 By type of offering 9 Public 131,568 134,917 128,554 12,920 10,536 8,962 16,536 4,514 4,006 7,295 7,833 10 Private placement4 111,373 177,772 102,734 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 110,284 118,369 77,577 4,893 7,834 6,633 11,608 1,833 539 2,754 3,731 12 Financial 21,284 16,548 50,977 8,027 2,702 2,329 4,928 2,681 3,467 4,541 4,102 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data include 144(a) offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data cover only public offerings. exclude secondary offerings, employee stock plans, investment companies other than closed- 4. Data for private placements are not available at a monthly frequency. end, intracorporate transactions, and Yankee bonds. Stock data include ownership securities SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic NonfinancialS tatistics • February 2003 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2002 IItteemm 22000000 22000011 Apr. May June July Aug. Sept. Oct.r Nov. 1 Sales of own shares2 2,279,315 1,806,474 164,504 154,987 138,520 170,946 151,136 125,408 164,959 138,380 2 Redemptions of own shares 2,057,277 1,677,266 140,524 138,052 144,153 200,148 136,210 126,760 167,039 122,975 3 Net sales3 222,038 129,208 23,980 16,935 -5,633 -29,202 14,926 -1,352 -2,080 15,405 4 Assets4 5,123,747 4,689,624 4,704,886 4,693,928 4,434,603 4,124,186 4,170,641 3,899,858 4,059,765 4,248,453 5 Cash5 277,386 219,620 249,078 243,755 208,390 199,586 220,425 199,778 204,019 218,664 6 Other 4,846,361 4,470,004 4,455,808 4,450,173 4,226,213 3,924,600 3,950,216 3,700,080 3,855,746 4,029,789 1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual 4. Market value at end of period, less current liabilities. funds. 5. Includes all U.S. Treasury securities and other short-term debt securities. 2. Excludes reinvestment of net income dividends and capital gains distributions and share SOURCE. Investment Company Institute. Data based on reports of membership, which issue of conversions from one fund to another in the same group. comprises substantially all open-end investment companies registered with the Securities and 3. Excludes sales and redemptions resulting from transfers of shares into or out of money Exchange Commission. Data reflect underwritings of newly formed companies after their market mutual funds within the same fund family. initial offering of securities. 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 2001 2002 AAccccoouunntt 11999999 22000000 22000011 Qi Q2 Q3 Q4 Ql Q2 Q3' ASSETS 1 Accounts receivable, gross2 845.4 958.7 948.3 954.5 988.8 967.8 948.3 930.0 941.9' 945.4 2 Consumer 304.4 328.0 340.1 319.3 324.6 329.3 340.1 329.8 332.0' 334.5 3 Business 395.1 458.4 447.0 459.1 481.9 451.1 447.0 443.0 449.4 445.5 4 Real estate 145.8 172.3 161.3 176.1 182.3 187.4 161.3 157.2 160.5 165.3 5 LESS: Reserves for unearned income 61.4 69.7 60.6 69.9 61.5 60.8 60.6 59.5 58.5 58.0 6 Reserves for losses 14.7 16.7 21.0 17.2 17.4 18.0 21.0 21.5 21.6 22.1 7 Accounts receivable, net 769.3 872.3 866.7 867.3 909.8 889.0 866.7 849.0 861.9' 865.4 8 All other 406.6 461.5 523.4 474.8 458.9 478.7 523.4 515.2 530.6 556.7 9 Total assets 1,175.9 1,333.7 1,390.1 1,342.1 1,368.7 1367.7 1390.1 1364.2 1392.5 1,422.1 LIABILITIES AND CAPITAL 10 Bank loans 35.4 35.9 50.8 41.6 45.3 44.5 50.8 49.4 56.9 74.9 11 Commercial paper 230.4 238.8 158.6 180.9 181.6 171.0 158.6 137.0 130.8 143.1 Debt 12 Owed to parent 87.8 102.5 99.2 97.2 93.4 91.7 99.2 82.6 83.3 82.9 13 Not elsewhere classified 429.9 502.2 567.4 533.8 542.1 555.8 567.4 574.4 597.2 584.9 14 All other liabilities 237.8 301.8 325.5 325.2 336.3 327.6 325.5 329.1 331.5 341.9 15 Capital, surplus, and undivided profits 154.5 152.5 188.6 163.5 170.0 177.2 188.6 191.7 192.9 194.6 16 Total liabilities and capital 1,175.9 1,333.7 1,390.1 1342.1 1368.7 1367.7 1390.1 1364.2 1392.5 1,422.3 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses. Excludes pools of securitized assets, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A31 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2002 TTyyppee ooff ccrreeddiitt May June July Aug. Sept. Oct. Seasonally adjusted 1 Total 1,031.2 1,187.0 1,248.5 1,243.1 1,258.3 1,269.0 1,269.1 U69.5r 1,267.4 2 Consumer 410.2 465.2 514.6 519.5 525.0 528.1 522.8 522.2 517.2 3 Real estate 174.0r 198.9r 201.T 200.8r 203. r 206.7r 209.6r 207.9r 211.8 4 Business 446.9 522.8 526.2 522.8 530.2 534.2 536.7 539.4 538.4 Not seasonally adjusted 5 Total 1,036.4 1,192.2 1,253.7 1,246.3 1,264.4 1,264.2 1,261.1 l,262.2r 1,262.2 6 Consumer 412.7 468.3 518.1 515.7 524.9 528.6 525.0 524.3 518.9 7 Motor vehicle loans 129.2 141.6 173.9 168.8 170.3 172.5 170.3 176.5 169.9 8 Motor vehicle leases 102.9 108.2 103.5 96.1 96.4 94.9 90.5 88.5 86.7 9 Revolving2 32.5 37.6 31.5 30.1 32.1 36.6 36.5 37.3 37.5 10 Other3 39.8 40.7 31.1 33.3 33.2 33.0 33.0 32.3 31.3 Securitized assets4 11 Motor vehicle loans 73.1 97.1 131.9 141.1 142.4 141.9 144.4 138.9 144.1 12 Motor vehicle leases 9.7 6.6 6.8 6.3 6.2 6.1 6.0 6.0 5.9 13 Revolving 6.7 19.6 25.0 25.8 29.2 28.9 29.9 30.5 29.2 14 Other 18.8 17.1 14.3 14.3 15.0 14.7 14.4 14.4 14.4 15 Real estate 174.0 198.9 207.7 200.8 203.1 206.7 209.6 207.9r 211.8 16 One- to four-family 108.2 130.6 120.1 120.4 121.8 125.7 128.7 126.5 130.5 17 Other 37.6 41.7 41.2 38.1 38.7 38.7 38.8 39.0 39.0 Securitized real estate assets4 18 One- to four-family 28.0 24.7 40.7 40.9 40.9 40.6 40.4 40.1 40.1 19 Other .2 1.9 5.7 1.4 1.7 1.7 1.7 2.2 2.2 20 Business 449.6 525.0 527.9 529.8 536.5 529.0 526.4 530.0 531.5 21 Motor vehicles 69.4 75.5 54.0 61.1 59.9 56.7 56.0 56.9 57.4 22 Retail loans 21.1 18.3 16.1 16.4 17.0 17.5 17.2 17.6 18.1 23 Wholesale loans5 34.8 39.7 20.3 26.9 25.8 22.3 22.2 23.3 23.5 24 Leases 13.6 17.6 17.6 17.8 17.1 16.9 16.6 15.9 15.9 25 Equipment 238.7 283.5 289.4 281.8 288.0 286.0 287.5 289.2 287.2 26 Loans 64.5 70.2 77.8 79.2 78.9 80.0 81.4 82.8 80.9 27 Leases 174.2 213.3 211.6 202.6 209.2 206.1 206.1 206.4 206.4 28 Other business receivables6 87.0 99.4 103.5 103.0 101.5 102.8 99.8 99.4 96.7 Securitized assets4 29 Motor vehicles 31.5 37.8 50.1 42.4 45.5 41.5 41.0 43.8 47.0 30 Retail loans 2.9 3.2 5.1 2.6 2.4 2.3 2.2 2.2 1.9 31 Wholesale loans 26.4 32.5 42.5 37.1 40.8 36.9 36.5 39.3 42.8 32 Leases 2.1 2.2 2.5 2.7 2.3 2.3 2.3 2.3 2.3 33 Equipment 14.6 23.1 23.2 21.9 21.7 21.6 22.0 21.6 23.9 34 Loans 7.9 15.5 16.4 15.2 15.0 15.0 15.4 14.8 17.2 35 Leases 6.7 7.6 6.8 6.6 6.7 6.7 6.6 6.7 6.7 36 Other business receivables6 8.4 5.6 7.7 19.6 19.9 20.3 20.1 19.1 19.2 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidibreakdowns have been obtained for some components. In addition, previously unavailable aries of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 DomesticN onfinancialS tatistics • February 2003 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2002 IItteemm 11999999 22000000 22000011 May June July Aug. Sept. Oct. Nov. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 210.7 234.5 245.0 265.0 268.2 268.2 267.5 266.7 258.7 256.7 2 Amount of loan (thousands of dollars) 161.7 177.0 184.2 199.1 201.1 201.6 199.1 201.1 195.0 193.3 3 Loan-to-price ratio (percent) 78.7 77.4 77.3 77.2 77.1 77.5 77.3 77.6 77.7 77.4 4 Maturity (years) 28.8 29.2 28.8 29.0 29.0 29.1 29.0 29.1 28.8 28.4 5 Fees and charges (percent of loan amount)2 .77 .70 .67 .59 .56 .62 .59 .60 .63 .61 Yield (percent per year) 6 Contract rate1 6.94 7.41 6.90 6.51 6.38 6.28 6.17 6.09 6.00 5.99 7 Effective rate13 7.06 7.52 7.00 6.59 6.47 6.37 6.26 6.17 6.09 6.08 8 Contract rate (HUD series)4 7.45 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (section 203)5 7.74 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 GNMA securities6 7.03 7.57 6.36 6.21 6.03 5.82 5.53 5.15 5.31 5.29 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 523,941 610,122 707,015 741,084 740,744 743,025 746,101 751,423 751,347 760,759 12 FHA/VA insured 55,318 61,539 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Conventional 468,623 548,583 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Mortgage transactions purchased (during period) 195,210 154,231 270,384 17,432 16,310 17,586 23,123 33,518 32,853 47,807 Mortgage commitments (during period) 15 Issued7 187,948 163,689 304,084 18,305 24,700 29,786 42,555 58,055 n.a. n.a. 16 To sell8 5,900 11,786 7,586 124 2,535 62 1,292 1,016 n.a. n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 324,443 385,693 491,719 515,732 518,816 521,137 525,795 530,694 536,389 549,380 18 FHA/VA insured 1,836 3,332 3,506 2,571 3,649 3,413 4,195 4,634 n.a. n.a. 19 Conventional 322,607 382,361 488,213 513,161 515,167 517,724 521,600 526,060 n.a. n.a. Mortgage transactions (during period) 20 Purchases 239,793 174,043 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Sales 233,031 166,901 389,611 29,831 30,767 29,335 34,937 46,369 60,516 62,354 22 Mortgage commitments contracted (during period)9 228,432 169,231 417,434 32,702 32,468 34,827 44,401 57,793 n.a. n.a. 1. Weighted averages based on sample surveys of mortgages originated by major institu- 6. Average net yields to investors on fully modified pass-through securities backed by tional lender groups for purchase of newly built homes; compiled by the Federal Housing mortgages and guaranteed by the Government National Mortgage Association (GNMA), Finance Board in cooperation with the Federal Deposit Insurance Corporation. assuming prepayment in twelve years on pools of thirty-year mortgages insured by the 2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby commitments 3. Average effective interest rate on loans closed for purchase of newly built homes, converted. assuming prepayment at the end of ten years. 8. Includes participation loans as well as whole loans. 4. Average contract rate on new commitments for conventional first mortgages; from U.S. 9. Includes conventional and government-underwritten loans. The Federal Home Loan Department of Housing and Urban Development (HUD). Based on transactions on the first Mortgage Corporation's mortgage commitments and mortgage transactions include activity day of the subsequent month. under mortgage securities swap programs, whereas the corresponding data for the Federal 5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured by National Mortgage Association exclude swap activity. the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A33 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 2001 2002 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999988 11999999 22000000 Q3 Q4 Ql Q2 Q3P 1 All holders 5,715,556 6,320,690r 6,885,547' 7,407,530' 7,589,968' 7,754,015' 7,971,417' 8,209,266 By type of property 2 One- to four-family residences 4,365,968 4,790,601 5,203,899' 5,600,651' 5,732,907' 5,871,331' 6,043,139' 6,242,661 3 Multifamily residences 331,602 369,251 406,530 440,753 454,715 462,579 474,170' 482,851 4 Nonfarm, nonresidential 921,482 l,057,874r 1,166,261 1,251,517 1,286,011 1,301,988' l^s.eso' 1,360,371 5 96,504 102,964 108,858 114,610 116,336' 118,116' 120,428' 123,383 By type of holder 6 Major financial institutions 2,194,591 2,394,271 2,618,969 2,734,217 2,791,076 2,789,654 2,861,044' 2,981,095 7 Commercial banks2 1,336,996 1,495,420 1,660,054 1,736,631 1,789,819 1,800,362 1,873,203' 1,961,908 8 One- to four-family 797,004 879,576 965,635 987,682 1,023,851 1,018,478 1,070,522' 1,143,938 9 Multifamily 54,632 67,665 77,803 83,949 84,851 86,719 90,743' 90,929 10 Nonfarm, nonresidential 456,323 516,333 582,577 629,624 645,619 659,187 674,972' 689,288 11 Farm 29,037 31,846 34,039 35,375 35,498 35,978 36,966' 37,753 12 Savings institutions3 643,955 668,064 722,974 758,344 758,236 745,998 742,732' 773,689 13 One- to four-family 533,501 548,222 594,221 620,392 620,579 605,171 599,402' 625,424 14 Multifamily 57,037 59,309 61,258 64,405 64,592 65,199 66,009' 68,668 15 Nonfarm, nonresidential 53,002 60,063 66,965 72,977 72,534 75,077 76,768' 79,036 16 Farm 414 470 529 569 531 551 552' 560 17 Life insurance companies 213,640 230,787 235,941 239,243 243,021 243,293 245,109' 245,498 18 One- to four-family 6,590 5,934 4,903 5,091 4,931 4,938 5,188' 5,197 19 Multifamily 31,522 32,818 33,681 33,885 35,631 35,671 35,844' 35,900 20 Nonfarm, nonresidential 164,004 179,048 183,757 186,469 188,376 188,599 189,988' 190,287 21 Farm 11,524 12,987 13,600 13,798 14,083 14,085 14,089' 14,114 22 Federal and related agencies 291,961 320,054 344,225 363,001 376,999 385,027 396,091 412,014 23 Government National Mortgage Association 7 7 6 9 8 8 8 8 24 One- to four-family 7 7 6 9 8 8 8 8 25 Multifamily 0 0 0 0 0 0 0 0 26 Farmers Home Administration4 40,851 73,871 73,323 72,118 72,452 72,362 71,970 72,030 27 One- to four-family 16,895 16,506 16,372 15,916 15,824 15,665 15,273 15,139 28 Multifamily 11,739 11,741 11,733 11,710 11,712 11,707 11,692 11,686 29 Nonfarm, nonresidential 7,705 41,355 41,070 40,470 40,965 41,134 41,188 41,439 30 Farm 4,513 4,268 4,148 4,023 3,952 3,855 3,817 3,766 31 Federal Housing Admin, and Dept. of Veterans Affairs 3,674 3,712 3,507 3,155 3,290 3,361 3,473 2,973 32 One- to four-family 1,849 1,851 1,308 1,251 1,260 1,255 1,254 1,252 33 Multifamily 1,825 1,861 2,199 1,904 2,031 2,105 2,218 1,721 34 Resolution Trust Corporation 0 0 0 0 0 0 0 0 35 One- to four-family 0 0 0 0 0 0 0 0 36 Multifamily 0 0 0 0 0 0 0 0 M Nonfarm, nonresidential 0 0 0 0 0 0 0 0 .38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 361 152 45 26 13 7 22 13 40 One- to four-family 58 25 7 4 2 1 4 2 41 Multifamily 70 29 9 5 3 1 4 2 42 Nonfarm, nonresidential 233 98 29 17 8 4 14 8 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 156,023 149,422 155,626 165,687 169,908 176,051 180,491 184,191 45 One- to four-family 147,594 141,195 144,150 151,786 155,060 160,300 164,038 167,006 46 Multifamily 8,429 8,227 11,476 13,901 14,848 15,751 16,453 17,185 47 Federal Land Banks 32,983 34,187 36,326 39,722 40,885 41,981 42,951 44,782 48 One- to four-family 1,941 2,012 2,137 2,337 2,406 2,470 2,527 2,635 49 Farm 31,042 32,175 34,189 37,385 38,479 39,511 40,424 42,147 50 Federal Home Loan Mortgage Corporation 57,085 56,676 59,240 59,638 62,792 59,624 58,872 60,934 51 One- to four-family 49,106 44,321 42,871 39,217 40,309 35,955 34,062 34,616 52 Multifamily 7,979 12,355 16,369 20,421 22,483 23,669 24,810 26,318 53 Mortgage pools or trusts5 2,581,297 2,948,245 3,231,415 3,583,240 3,715,692 3,868,993' 3,988,381' 4,075,446 54 Government National Mortgage Association 537,446 582,263 611,553 603,186 591,368 587,204' 583,791' 567,631 55 One- to four-family 522,498 565,189 592,624 581,796 569,460 564,108' 559,595' 542,453 56 Multifamily 14,948 17,074 18,929 21,391 21,908 23,096 24,196 25,178 57 Federal Home Loan Mortgage Corporation 646,459 749,081 822,310 927,490 948,409 1,012,478 1,053,261 1,058,176 58 One- to four-family 643,465 744,619 816,602 921,709 940,933 1,005,136 1,045,981 1,050,899 59 Multifamily 2,994 4,462 5,708 5,781 7,476 7,342 7,280 7,277 60 Federal National Mortgage Association 834,517 960,883 1,057,750 1,228,131 1,290,351 1,355,404 1,404,594 1,458,945 61 One- to four-family 804,204 924,941 1,016,398 1,177,995 1,238,125 1,301,374 1,349,442 1,402,929 62 Multifamily 30,313 35,942 41,352 50,136 52,226 54,030 55,152 56,016 63 Farmers Home Administration4 1 0 0 0 0 0 0 0 64 One- to four-family 0 0 0 0 0 0 0 0 65 Multifamily 0 0 0 0 0 0 0 0 66 Nonfarm, nonresidential 0 0 0 0 0 0 0 0 67 Farm 1 0 0 0 0 0 0 0 68 Private mortgage conduits 562,874 656,018 739,802 824,433 885,564 913,907 946,735' 990,694 69 One- to four-family6 405,153 455,021 499,834 550,200 591,200 616,300 638,30a 671,200 70 Multifamily 33,784 42,293 48,786 53,627 57,009 57,535 59,491' 61,239 71 Nonfarm, nonresidential 123,937 158,704 191,182 220,606 237,355 240,072 248,944' 258,256 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 647,708 658,120' 690,939' 727,071' 706,201' 710,341' 725,902' 740,711 74 One- to four-family 435,137 459,385 490,900' 522,793' 501,465' 508,679' 519,364' 532,988 75 Multifamily 76,320 75,244 77,006 79,464 79,791 79,612 80,153 80,623 76 Nonfarm, nonresidential 116,277 102,274' 100,681 101,354 101,154 97,915' 101,807' 102,057 77 19,974 21,217 22,352 23,460 23,792' 24,135' 24,579' 25,043 1. Multifamily debt refers to loans on structures of five or more units. 6. Includes securitized home equity loans. 2. Includes loans held by nondeposit trust companies but not loans held by bank trust 7. Other holders include mortgage companies, real estate investment trusts, state and local departments. credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and 3. Includes savings banks and savings and loan associations. finance companies. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from SOURCE. Based on data from various institutional and government sources. Separation of FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting nonfarm mortgage debt by type of property, if not reported directly, and interpolations and changes by the Farmers Home Administration. extrapolations, when required for some quarters, are estimated in part by the Federal Reserve. 5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by Line 69 from Inside Mortgage Securities and other sources. the agency indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Financial Statistics • February 2003 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2002 May' June' July' Aug.' Sept.' Oct. Seasonally adjusted 1 Total 1,416,316 1,560,634 1,667,928 1,704,561 1,707,452 1,714,829 1,717,799 1,722,549 1,723,983 2 Revolving 597,669 666,607 699,875 709,676 712,126 715,796 719,483 721,274 723,733 3 Nonrevolving2 818,647 894,027 968,053 994,885 995,326 999,033 998,317 1,001,274 1,000,251 Not seasonally adjusted 4 Total 1,446,127 1,593,116 1,701,856 1,691,993 1,700,283 1,705,621 1,719,577 1,720,643 1,723,707 By major holder 5 Commercial banks 499,758 541,470 558,421 557,463 554,864 557,285 572,446 575,732 578,554 6 Finance companies 201,549 219,848 236,559 232,116 235,640 242,088 239,857 246,072 238,670 7 Credit unions 167,921 184,434 189,570 190,672 191,618 194,060 195,559 196,059 197,104 8 Savings institutions 61,527 64,557 69,070 68,499 68,451 67,370 66,289 65,243 65,243 9 Nonfinancial business 80,311 82,662 67,955 55,802 53,010 51,296 52,101 49,170 49,120 10 Pools of securitized assets3 435,061 500,145 580,281 587,442 596,700 593,522 593,326 588,366 595,016 By major type of credit* 11 Revolving 621,914 693,020 727,297 704,809 709,469 709,018 716,233 715,990 717,156 12 Commercial banks 189,352 218,063 224,878 218,310 215,765 214,092 224,698 226,197 226,023 13 Finance companies 32,483 37,627 31,538 30,073 32,131 36,570 36,529 37,280 37,453 14 Credit unions 20,641 22,226 22,265 20,882 20,988 21,206 21,505 21,388 21,238 15 Savings institutions 15,838 16,560 17,767 17,529 17,795 16,751 15,707 14,696 14,696 16 Nonfinancial business 42,783 42,430 29,790 20,359 17,859 16,467 16,747 14,129 14,100 17 Pools of securitized assets3 320,817 356,114 401,059 397,655 404,930 403,933 401,048 402,299 403,646 18 Nonrevolving 824,213 900,095' 974,559 987,184 990,814 996,603 1,003,344 1,004,653 1,006,551 19 Commercial banks 310,406 323,407 333,543 339,153 339,099 343,193 347,748 349,535 352,531 20 Finance companies 169,066 182,221 205,021 202,043 203,509 205,518 203,329 208,792 201,218 21 Credit unions 147,280 162,208 167,305 169,790 170,630 172,854 174,054 174,671 175,866 22 Savings institutions 45,689 47,997 51,303 50,970 50,656 50,619 50,582 50,547 50,547 23 Nonfinancial business 37,528 40,232 38,165 35,442 35,150 34,829 35,354 35,041 35,020 24 Pools of securitized assets3 114,244 144,031 179,222 189,787 191,770 189,590 192,277 186,067 191,370 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 3. Outstanding balances of pools upon which securities have been issued; these balances extended to individuals, excluding loans secured by real estate. Data in this table also appear are no longer carried on the balance sheets of the loan originator. in the Board's G.19 (421) monthly statistical release. For ordering address, see inside front 4. Totals include estimates for certain holders for which only consumer credit totals are cover. available. 2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not included in revolving credit, such as loans for education, boats, trailers, or vacations. These loans may be secured or unsecured. 1.56 TERMS OF CONSUMER CREDIT1 Percent per year except as noted 2002 IItteemm 11999999 22000000 22000011 Apr. May June July' Aug.' Sept. Oct. INTEREST RATES Commercial banks2 1 48-month new car 8.44 9.34 8.50 n.a. 7.74 n.a. n.a. 5.95 n.a. n.a. 2 24-month personal 13.39 13.90 13.22 n.a. 12.57 n.a. n.a. 11.28 n.a. n.a. Credit card plan 3 All accounts 15.21 15.71 14.89 n.a. 13.55 n.a. n.a. 13.37 n.a. n.a. 4 Accounts assessed interest 14.81 14.91 14.44 n.a. 13.34 n.a. n.a. 13.26 n.a. n.a. Auto finance companies 5 New car 6.66 6.61 5.65 5.51 6.15 6.25' 3.58 2.17 2.29' 2.79 6 Used car 12.60 13.55 12.18 10.94 10.90 10.71' 10.59 10.46 10.44 10.67 OTHER TERMS3 Maturity (months) 7 New car 52.7 54.9 55.1 55.9 57.3 58.6 58.9 59.2 58.4 57.2 8 Used car 55.9 57.0 57.5 57.7 57.8 57.7 57.8 57.6 57.5 57.3 Loan-to-value ratio 9 New car 92 92 91 93 92 91' 95 97 97' 96 10 Used car 99 99 100 101 101 100 100 100 100 100 Amount financed (dollars) 11 New car 19,880 20,923 22,822 23,535 23,324 23,436' 25,089 26,455 26,331' 26,232 12 Used car 13,642 14,058 14,416 14,363 14,700 14,631' 14,701 14,679 14,801' 14,645 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 5 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q1 Q2 Q3 Q4 Q1 Q2 Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 733.3 804.4 1,042.4 1,057.5 853.9 949.1 1,032.4 1,276.8 1,213.7 927.3 1,613.7 1,329.4 By sector and instrument 7 Federal government 144.9 23.1 -52.6 -71.2 -295.9 -59.3 -215.8 209.3 43.4 39.8 526.0 265.7 3 Treasury securities 146.6 23.2 -54.6 -71.0 -294.9 -57.0 -216.9 209.7 44.2 41.6 524.2 264.2 4 Budget agency securities and mortgages -1.6 -.1 2.0 -.2 -1.0 -2.2 1.1 -.4 -.7 -1.8 1.8 1.6 5 Nonfederal 588.3 781.3 1,095.0 1,128.7 1,149.8 1,008.4 1,248.2 1,067.4 1,170.2 887.5 1,087.7 1,063.7 By instrument ft Commercial paper -.9 13.7 24.4 37.4 48.1 -199.2 -133.4 -66.1 45.5 -155.7 -93.0 -28.7 7 Municipal securities and loans 2.6 71.4 96.8 68.2 35.3 102.9 107.3 70.0 190.1 70.3 181.2 152.8 8 Corporate bonds 116.3 150.5 218.7 229.9 171.1 399.5 419.5 187.9 323.5 233.8 207.0 -23.4 9 Bank loans n.e.c 70.4 106.4 108.2 82.8 101.7 -19.5 -121.0 -24.4 -164.5 -18.8 -192.8 -125.1 10 Other loans and advances 28.7 59.5 82.1 46.0 95.0 32.5 132.3 59.4 -107.3 -20.6 77.2 84.0 11 Mortgages 280.1 322.3 489.8 564.9 559.6 547.7 767.5 770.0 732.9 696.8 831.8 944.0 12 Home 241.7 258.3 387.7 424.6 413.7 423.4 607.8 559.3 530.6 601.1 657.4 786.2 13 Multifamily residential 9.8 7.3 23.4 35.7 35.2 37.6 40.8 56.5 56.5 29.2 44.3 35.8 14 Commercial 25.8 53.5 72.2 98.8 104.2 82.3 107.0 147.1 139.0 59.6 121.0 109.5 15 Farm 2.7 3.1 6.5 5.8 6.5 4.3 11.9 7.0 6.8 6.9 9.1 12.4 16 Consumer credit 91.3 57.5 75.0 99.5 139.0 144.5 76.0 70.6 149.9 81.7 76.4 60.1 By borrowing sector 17 Household 339.8 332.7 454.8 498.0 541.3 506.5 650.6 661.3 623.3 702.6 679.8 770.7 18 Nonfinancial business 255.3 392.5 559.9 578.4 581.4 405.7 495.1 349.6 389.2 122.6 239.5 153.2 19 Corporate 183.1 291.6 392.1 390.5 399.8 237.7 313.5 191.3 239.8 7.1 98.3 10.7 20 Nonfarm noncorporate 67.3 94.7 159.7 182.4 170.7 162.2 170.1 153.8 141.1 110.3 132.7 128.9 21 Farm 4.9 6.2 8.0 5.5 10.9 5.7 11.5 4.4 8.3 5.3 8.5 13.5 22 State and local government -6.8 56.1 80.3 52.3 27.2 96.3 102.5 56.6 157.7 62.3 168.4 139.9 23 Foreign net borrowing in United States 88.4 71.8 43.2 25.2 65.7 -8.5 -50.5 -106.7 16.0 75.3 15.0 -36.8 24 Commercial paper 11.3 3.7 7.8 16.3 31.7 -33.8 -3.8 -25.2 5.9 64.8 36.3 3.8 25 Bonds 67.0 61.4 34.9 14.1 23.9 21.4 -15.8 -83.9 29.7 -2.3 -41.0 -27.6 26 Bank loans n.e.c 9.1 8.5 6.6 .5 11.4 14.3 -31.4 4.2 -16.3 13.9 22.0 -11.7 27 Other loans and advances 1.0 -1.8 -6.0 -5.7 -1.3 -10.4 .5 -1.8 -3.3 -1.2 -2.3 -1.3 28 Total domestic plus foreign 821.7 876.2 1,085.6 1,082.6 919.6 940.6 981.9 1,170.1 1,229.6 1,002.6 1,628.8 1,292.6 Financial sectors 29 Total net borrowing by financial sectors 550.1 662.2 1,087.2 1,073.3 809.0 915.8 828.2 1,118.6 979.1 860.8 866.3 855.9 By instrument 30 Federal government-related 231.4 212.9 470.9 592.0 433.5 432.6 674.6 818.4 591.8 691.1 487.9 425.6 31 Government-sponsored enterprise securities 90.4 98.4 278.3 318.2 234.1 262.3 268.3 326.2 306.5 191.3 141.7 253.2 32 Mortgage pool securities 141.0 114.6 192.6 273.8 199.4 170.3 406.2 492.2 285.3 499.8 346.2 172.4 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 318.7 449.3 616.3 481.3 375.5 483.3 153.7 300.2 387.3 169.7 378.4 430.3 35 Open market paper 92.2 166.7 161.0 176.2 127.7 -83.8 -77.9 -72.2 -13.6 -178.3 -109.1 84.3 36 Corporate bonds 178.1 218.9 310.2 207.1 199.3 459.7 223.2 313.9 375.3 345.1 431.9 194.7 37 Bank loans n.e.c 12.6 13.3 30.1 -14.2 -.2 24.3 10.8 1.6 18.3 .2 31.9 82.2 38 Other loans and advances 27.9 35.6 90.2 107.1 42.5 90.6 -18.7 58.8 8.9 -3.9 16.7 71.9 39 Mortgages 7.9 14.9 24.8 5.1 6.2 -7.5 16.2 -1.9 -1.6 6.6 7.0 -2.7 By borrowing sector 40 Commercial banking 13.0 46.1 72.9 67.2 60.0 138.1 -10.5 39.7 44.1 24.3 13.3 111.3 41 Savings institutions 25.5 19.7 52.2 48.0 27.3 55.5 3.4 39.4 -68.6 -33.1 -12.1 -10.2 42 Credit unions .1 .1 .6 2.2 .0 -.6 .8 1.5 4.4 2.4 2.0 1.0 43 Life insurance companies 1.1 .2 .7 .7 -.7 -2.4 .1 3.5 1.4 2.4 1.2 .7 44 Government-sponsored enterprises 90.4 98.4 278.3 318.2 234.1 262.3 268.3 326.2 306.5 191.3 141.7 253.2 45 Federally related mortgage pools 141.0 114.6 192.6 273.8 199.4 170.3 406.2 492.2 285.3 499.8 346.2 172.4 46 Issuers of asset-backed securities (ABSs) 150.8 202.2 321.4 212.3 189.7 320.5 205.9 318.9 432.6 254.5 237.7 203.0 47 Finance companies 50.6 57.8 57.1 70.3 81.2 -54.0 36.8 41.8 -25.3 -31.2 80.2 106.4 48 Mortgage companies 4.1 -4.6 1.6 .2 .1 .7 .6 .8 .6 .8 .7 .7 49 Real estate investment trusts (REITs) 11.9 39.6 62.7 6.3 2.7 -6.1 10.5 -2.4 7.8 7.4 25.3 18.4 50 Brokers and dealers -2.0 8.1 7.2 -17.2 15.6 -23.7 35.6 12.6 -18.9 -15.7 17.5 15.0 51 Funding corporations 63.8 79.9 40.0 91.5 -.4 55.3 -129.6 -155.7 9.1 -42.2 12.4 -16.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • February 2003 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS '—Continued Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999977 11999988 11999999 22000000 Ql Q2 Q3 Q4 Ql Q2 Q3 All sectors 55552222 TTTToooottttaaaallll nnnneeeetttt bbbboooorrrrrrrroooowwwwiiiinnnngggg,,,, aaaallllllll sssseeeeccccttttoooorrrrssss 1,371.7 1,538.5 2,172.8 2,155.9 1,728.6 1,856.5 1,810.1 2.288.7 2,208.7 1,863.4 2,495.1 2,148.5 55553333 OOOOppppeeeennnn mmmmaaaarrrrkkkkeeeetttt ppppaaaappppeeeerrrr 102.6 184.1 193.1 229.9 207.6 -316.8 -215.1 -163.5 37.8 -269.2 -165.8 59.4 55554444 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss 376.3 236.0 418.3 520.7 137.6 373.3 458.8 1.027.8 635.2 730.9 1,013.9 691.4 55555555 MMMMuuuunnnniiiicccciiiippppaaaallll sssseeeeccccuuuurrrriiiittttiiiieeeessss 2.6 71.4 96.8 68.2 35.3 102.9 107.3 70.0 190.1 70.3 181.2 152.8 55556666 CCCCoooorrrrppppoooorrrraaaatttteeee aaaannnndddd ffffoooorrrreeeeiiiiggggnnnn bbbboooonnnnddddssss 361.3 430.8 563.7 451.2 394.3 880.6 626.9 417.9 728.4 576.6 597.9 143.7 55557777 BBBBaaaannnnkkkk llllooooaaaannnnssss nnnn....eeee....cccc 92.1 128.2 145.0 69.0 112.8 19.2 -141.6 -18.6 -162.4 -4.6 -139.0 -54.7 55558888 OOOOtttthhhheeeerrrr llllooooaaaannnnssss aaaannnndddd aaaaddddvvvvaaaannnncccceeeessss 57.7 93.2 166.3 147.4 136.2 112.7 114.2 116.5 -101.8 -25.7 91.5 154.6 55559999 MMMMoooorrrrttttggggaaaaggggeeeessss 287.9 337.2 514.6 570.0 565.9 540.2 783.7 768.0 731.3 703.4 838.8 941.2 66660000 CCCCoooonnnnssssuuuummmmeeeerrrr ccccrrrreeeeddddiiiitttt 91.3 57.5 75.0 99.5 139.0 144.5 76.0 70.6 149.9 81.7 76.4 60.1 Funds raised through mutual funds and corporate equities 66661111 TTTToooottttaaaallll nnnneeeetttt iiiissssssssuuuueeeessss 233.4 181.8 114.4 158.1 194.6 230.8 407.2 133.4 375.5 438.3 284.0 -90.2 66662222 CCCCoooorrrrppppoooorrrraaaatttteeee eeeeqqqquuuuiiiittttiiiieeeessss -4.2 -83.3 -165.1 -33.1 -40.4 114.8 133.6 -27.0 119.6 51.4 183.9 -133.1 66663333 NNNNoooonnnnffffiiiinnnnaaaannnncccciiiiaaaallll ccccoooorrrrppppoooorrrraaaattttiiiioooonnnnssss -69.5 -114.4 -267.0 -143.5 -159.7 -25.0 -70.7 -126.6 -25.0 -8.7 18.5 -139.0 66664444 FFFFoooorrrreeeeiiiiggggnnnn sssshhhhaaaarrrreeeessss ppppuuuurrrrcccchhhhaaaasssseeeedddd bbbbyyyy UUUU....SSSS.... rrrreeeessssiiiiddddeeeennnnttttssss 82.8 57.6 101.3 114.3 103.6 86.1 222.9 43.5 74.7 -5.9 80.9 -68.2 66665555 FFFFiiiinnnnaaaannnncccciiiiaaaallll ccccoooorrrrppppoooorrrraaaattttiiiioooonnnnssss -17.6 -26.5 .6 -4.0 15.7 53.7 -18.5 56.1 69.9 65.9 84.5 74.1 66666666 MMMMuuuuttttuuuuaaaallll ffffuuuunnnndddd sssshhhhaaaarrrreeeessss 237.6 265.1 279.5 191.2 235.0 116.0 273.5 160.4 255.9 386.9 100.0 42.9 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables F.2 through F4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 5 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999977 11999988 11999999 22000000 Ql Q2 Q3 Q4 Ql Q2 Q3 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,371.7 1,538.5 2,172.8 2,155.9 1,728.6 1,856.5 1,810.1 2,288.7 2,208.7 1,863.4 2,495.1 2,148.5 7 Domestic nonfederal nonfinancial sectors 108.2 29.8 255.2 253.1 -100.1 -115.9 -165.2 1.1 16.4 167.8 257.4 -233.8 Household 148.1 39.8 123.4 243.4 -103.1 -135.5 -174.4 -5.6 -33.8 115.9 207.0 -250.3 4 Nonfinancial corporate business -10.2 -12.7 -16.0 -15.6 5.0 -22.5 -24.6 -34.1 5.8 49.7 4.5 .8 5 Nonfarm noncorporate business 4.0 2.6 13.3 -3.0 -1.2 3.2 .3 3.3 2.0 3.3 3.3 -2.2 6 State and local governments -33.7 .1 134.5 28.4 -.8 38.9 33.5 37.4 42.4 -1.1 42.5 17.8 7 Federal government -7.2 5.1 13.5 5.8 7.3 4.4 9.4 3.3 7.0 4.7 8.9 7.3 8 Rest of the world 379.6 259.6 172.5 139.7 225.9 325.7 254.9 269.2 432.5 171.8 566.1 561.7 9 Financial sectors 891.2 1,244.0 1,731.6 1,757.3 1,595.4 1,642.3 1,711.1 2,015.1 1,752.8 1,519.1 1,662.7 1,813.3 in Monetary authority 12.3 38.3 21.1 25.7 33.7 39.0 26.9 8.4 85.1 81.6 43.4 67.3 n Commercial banking 187.5 324.3 305.6 312.2 357.9 130.4 107.8 267.9 314.6 188.9 384.3 623.5 12 U.S.-chartered banks 119.6 274.9 312.1 318.6 339.5 92.3 156.5 242.5 275.0 168.2 343.8 599.6 13 Foreign banking offices in United States 63.3 40.2 -11.6 -17.0 23.9 34.5 -50.1 21.1 -7.8 2.1 33.7 21.5 14 Bank holding companies 3.9 5.4 -.9 6.2 -12.2 7.3 -2.8 -1.4 13.6 12.0 1.9 -1.6 15 Banks in U.S.-affiliated areas .7 3.7 6.0 4.4 6.7 -3.6 4.2 5.7 33.9 6.6 4.9 4.0 16 Savings institutions 19.9 -4.7 36.2 67.7 56.2 46.8 55.8 -4.7 73.1 12.3 -23.5 80.7 17 Credit unions 25.5 16.8 18.9 27.5 28.0 34.9 9.6 61.1 60.5 58.3 41.1 39.9 18 Bank personal trusts and estates -7.7 -25.0 -12.8 27.8 .8 4.0 5.5 4.9 8.9 11.3 11.4 4.9 19 Life insurance companies 69.6 104.8 76.9 53.5 57.9 111.8 143.6 186.9 81.3 260.6 175.1 229.1 20 Other insurance companies 22.5 25.2 5.8 -3.0 -8.7 2.1 .1 5.1 28.5 36.7 35.4 35.3 7.1 Private pension funds -4.1 47.6 -23.4 17.0 33.4 20.7 44.7 10.4 5.3 27.4 45.9 35.5 ?.?, State and local government retirement funds 35.8 67.1 72.1 46.9 54.6 -70.7 77.0 -74.2 -2.7 70.5 -54.5 -33.0 23 Money market mutual funds 88.8 87.5 244.0 182.0 143.0 326.4 210.0 339.3 108.4 -296.8 -122.3 -42.1 74 Mutual funds 48.9 80.9 127.3 48.4 21.0 93.0 169.1 102.7 139.3 243.3 42.0 164.8 75 Closed-end funds 5.2 -2.8 5.2 8.2 -6.3 -6.9 -4.9 24.4 14.8 20.9 2.2 11.6 26 Government-sponsored enterprises 97.1 106.3 314.0 291.3 256.4 329.2 297.2 274.3 335.3 236.7 129.0 174.8 27 Federally related mortgage pools 141.0 114.6 192.6 273.8 199.4 170.3 406.2 492.2 285.3 499.8 346.2 172.4 78 Asset-backed securities issuers (ABSs) 120.5 163.8 281.7 194.1 159.9 292.5 177.6 293.4 409.9 230.3 215.5 180.4 29 Finance companies 18.9 23.1 77.3 97.0 108.0 8.9 112.1 -43.1 -100.5 -28.2 39.6 79.1 30 Mortgage companies 8.2 -9.1 3.2 .3 .2 1.4 1.1 1.7 1.2 1.6 1.4 1.5 31 Real estate investment trusts (REITs) 4.4 20.2 -5.1 -2.6 -6.3 4.0 1.1 7.8 14.0 26.3 31.8 25.0 37 Brokers and dealers -15.7 14.9 6.8 -34.7 68.9 242.3 53.4 184.5 -110.5 -219.5 403.0 -191.4 33 Funding corporations 12.6 50.4 -15.8 124.0 37.4 -137.9 -182.9 -128.0 1.0 56.8 -84.3 139.1 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,371.7 1,538.5 2,172.8 2,155.9 1,728.6 1,856.5 1,810.1 2,288.7 2,208.7 1,863.4 2,495.1 2,148.5 Other financial sources 35 Official foreign exchange -6.3 .7 6.6 -8.7 -.4 -1.5 4.7 13.7 ..22 --33..00 1122..99 55..66 36 Special drawing rights certificates -.5 -.5 .0 -3.0 -4.0 .0 .0 .0 .0 .0 .0 .0 37 Treasury currency .5 .5 .6 1.0 2.4 -1.1 1.1 .0 .0 .0 .0 .0 38 Foreign deposits 85.9 107.7 6.5 61.0 135.1 228.3 -175.9 41.5 17.9 -59.1 89.3 40.0 39 Net interbank transactions -51.6 -19.7 -31.8 15.0 15.1 -141.8 -25.4 -1.1 41.5 -1.2 -149.3 48.7 40 Checkable deposits and currency 15.7 41.2 47.3 151.2 -71.4 164.1 155.2 212.1 278.9 3.2 285.9 284.6 41 Small time and savings deposits 97.2 97.1 152.4 45.1 188.8 266.9 242.1 230.3 329.7 259.7 249.0 325.6 47 Large time deposits 114.0 122.5 91.8 131.1 116.2 133.9 43.0 19.5 77.8 270.0 34.9 28.1 43 Money market fund shares 145.4 155.9 287.2 249.1 233.3 578.4 370.0 386.1 379.8 -315.7 103.4 -192.6 44 Security repurchase agreements 41.4 120.9 91.3 169.8 113.2 -94.3 114.0 215.6 -139.1 -55.8 252.8 -135.9 45 Corporate equities -4.2 -83.3 -165.1 -33.1 —40.4 114.8 133.6 -27.0 119.6 51.4 183.9 -133.1 46 Mutual fund shares 237.6 265.1 279.5 191.2 235.0 116.0 273.5 160.4 255.9 386.9 100.0 42.9 47 Trade payables 123.3 139.8 106.4 268.6 170.2 186.4 -119.6 -47.3 -96.5 217.9 67.0 148.1 48 Security credit 52.4 111.0 103.2 104.4 146.1 -91.1 -73.9 561.3 -383.7 -190.7 -129.4 -118.2 49 Life insurance reserves 44.5 59.3 48.0 50.8 50.2 62.3 52.2 74.7 119.6 93.9 92.2 117.4 50 Pension fund reserves 148.3 201.4 217.4 181.8 209.0 295.9 209.1 180.3 150.8 134.1 145.5 263.4 51 Taxes payable 19.5 22.3 19.6 23.2 21.7 4.3 14.8 104.9 -67.0 20.4 62.4 -60.4 52 Investment in bank personal trusts -5.1 -53.0 —46.1 -8.1 56.6 27.1 31.9 31.7 35.2 26.5 26.8 20.7 53 Noncorporate proprietors' equity 5.5 -40.7 -57.8 -38.7 -10.2 -19.7 -26.4 -44.6 -1.8 -13.2 -51.8 -75.9 54 Miscellaneous 522.4 493.8 956.9 1,053.8 1,164.9 748.6 867.3 857.0 190.9 132.6 523.3 752.1 55 Total financial sources 2,957.8 3,280.5 4,286.6 4,761.4 4,460.0 4,434.1 3,901.5 5,258.0 3,518.4 2,821.3 4,394.0 3,509.7 Liabilities not identified as assets (-) 56 Treasury currency -.4 -.2 -.1 -.7 -1.2 -3.6 -.5 -1.4 .0 -2.4 -.7 -1.3 57 Foreign deposits 59.4 106.2 -8.5 42.6 55.9 182.1 -166.8 54.5 -28.7 -36.6 130.9 9.7 58 Net interbank liabilities -3.3 -19.9 3.8 .1 20.4 21.8 17.0 7.4 22.6 39.4 -9.3 12.2 59 Security repurchase agreements 2.4 63.2 57.7 35.7 118.6 -277.2 124.6 110.4 -166.8 -17.3 115.9 -349.8 60 Taxes payable 23.1 28.0 19.7 11.7 26.2 24.9 3.1 25.4 22.8 31.1 -30.3 74.6 61 Miscellaneous -177.4 -248.3 -158.9 -290.4 -398.0 -253.8 -538.9 84.5 -197.6 -396.0 -86.9 152.8 Floats not included in assets (-) 62 Federal government checkable deposits .5 -2.7 2.6 -7.4 9.0 64.9 64.7 -23.0 -91.1 190.3 185.7 28.0 63 Other checkable deposits -4.0 -3.9 -3.1 -.8 1.7 3.6 3.9 5.0 5.7 6.1 7.1 7.6 64 Trade credit -25.7 -25.5 -43.3 2.8 26.1 48.1 28.6 -49.3 37.8 3.1 -72.7 -1.6 65 Total identified to sectors as assets 3,083.5 3,383.6 4,416.7 4,967.7 4,601.5 4,623.2 4,365.7 5,044.4 3,913.8 3,003.6 4,154.3 3,577.6 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.l and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 DomesticN onfinancial Statistics • February 2003 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2001 2002 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 15,243.1 16,285.5 17,377.6 18,250.6 18,498.8 18,673.4 18,988.9 19,369.2 19,601.0 19,915.4 20,257.3 By sector and instrument 2 Federal government 3,804.8 3,752.2 3,681.0 3,385.1 3,408.8 3,251.4 3,320.0 3,379.5 3,430.3 3,451.4 3,540.8 3 Treasury securities 3,778.3 3,723.7 3,652.7 3,357.8 3,382.0 3,224.3 3,293.0 3,352.7 3,404.0 3,424.6 3,513.6 4 Budget agency securities and mortgages 26.5 28.5 28.3 27.3 26.8 27.0 27.0 26.8 26.3 26.8 27.2 5 Nonfederal 11,438.3 12,533.3 13,696.7 14,865.5 15,090.1 15,422.0 15,669.0 15,989.7 16,170.7 16,464.1 16,716.4 By instrument 6 Commercial paper 168.6 193.0 230.3 278.4 253.2 223.3 201.3 190.1 167.5 148.4 142.2 7 Municipal securities and loans 1,367.5 1,464.3 1,532.5 1,567.8 1,597.5 1,629.8 1,635.3 1,685.4 1,707.5 1,758.2 1,783.8 8 Corporate bonds 1,610.9 1,829.6 2,059.5 2,230.6 2,330.4 2,435.3 2,482.3 2,563.2 2,621.6 2,673.4 2,667.5 9 Bank loans n.e.c 1,040.4 1,148.6 1,231.4 1,333.1 1,320.7 1,293.6 1,285.1 1,251.4 1,237.3 1,192.1 1,159.1 10 Other loans and advances 825.1 907.2 953.5 1,059.6 1,073.6 1,103.6 1,110.1 1,088.8 1,089.2 1,105.6 1,118.2 11 Mortgages 5,154.3 5,644.1 6,243.4 6,803.0 6,929.3 7,128.2 7,324.4 7,507.6 7,670.4 7,886.0 8,125.1 12 Home 3,978.3 4,366.0 4,790.6 5,204.3 5,299.4 5,458.4 5,602.1 5,734.6 5,873.4 6,045.4 6,245.2 13 Multifamily residential 284.6 308.0 343.9 379.2 388.6 398.8 412.9 427.0 434.3 445.4 454.4 14 Commercial 801.4 873.6 1,006.5 1,110.7 1,131.3 1,158.0 1,194.8 1,229.6 1,244.5 1,274.7 1,302.1 15 Farm 90.0 96.6 102.3 108.9 110.0 113.0 114.6 116.3 118.1 120.4 123.4 16 Consumer credit 1,271.6 1,346.6 1,446.1 1,593.1 1,585.3 1,608.1 1,630.5 1,703.3 1,677.2 1,700.3 1,720.6 By borrowing sector 17 Households 5,556.9 6,011.8 6,510.0 7,070.4 7,139.3 7,315.1 7,486.9 7,680.8 7,794.2 7,979.0 8,178.3 18 Nonfinancial business 4,761.9 5,321.7 5,934.5 6,515.9 6,643.3 6,769.0 6,841.4 6,926.4 6,973.7 7,035.5 7,065.5 19 Corporate 3,382.0 3,774.1 4,199.0 4,598.9 4,686.1 4,763.7 4,798.1 4,845.1 4,865.2 4,889.0 4,885.2 20 Nonfarm noncorporate 1,224.0 1,383.7 1,566.1 1,736.8 1,777.5 1,820.1 1,857.4 1,893.6 1,921.3 1,954.6 1,985.6 21 Farm 155.9 163.9 169.4 180.2 179.7 185.2 185.9 187.7 187.1 191.8 194.7 22 State and local government 1,119.5 1,199.8 1,252.1 1,279.3 1,307.5 1,337.8 1,340.6 1,382.5 1,402.8 1,449.6 1,472.6 23 Foreign credit market debt held in United States 607.9 651.3 676.7 742.3 740.4 726.1 701.7 704.9 724.2 725.6 719.1 24 Commercial paper 65.1 72.9 89.2 120.9 112.8 110.1 106.3 106.7 123.6 130.2 134.0 25 Bonds 427.7 462.6 476.7 500.6 505.9 502.0 481.0 488.4 487.9 477.6 470.7 26 Bank loans n.e.c 52.1 58.7 59.2 70.5 74.1 66.2 67.3 63.2 66.7 72.2 69.3 27 Other loans and advances 63.0 57.1 51.6 50.3 47.5 47.7 47.0 46.6 46.0 45.5 45.0 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 15,851.0 16,936.8 18,0543 18,993.0 19,239.2 19,399.4 19,690.6 20,074.1 20,325.2 20,641.0 20,976.3 Financial sectors 29 Total credit market debt owed by financial sectors 5,458.0 6,545.2 7,618.5 8,439.5 8,647.8 8,851.0 9,121.3 9,397.2 9,591.4 9,803.4 10,007.3 By instrument 30 Federal government-related 2,821.1 3,292.0 3,884.0 4,317.4 4,422.9 4,591.6 4,796.2 4,944.1 5,116.9 5,238.9 5,345.3 31 Government-sponsored enterprise securities ... 995.3 1,273.6 1,591.7 1,825.8 1,888.7 1,955.8 2,037.4 2,114.0 2,161.8 2,197.2 2,260.5 32 Mortgage pool securities 1,825.8 2,018.4 2,292.2 2,491.6 2,534.2 2,635.7 2,758.8 2,830.1 2,955.1 3,041.6 3,084.8 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 2,636.9 3,253.2 3,734.6 4,122.0 4,224.8 4,259.4 4,325.2 4,453.1 4,474.5 4,564.5 4,662.0 35 Open market paper 745.7 906.7 1,082.9 1,210.7 1,180.8 1,144.5 1,110.2 1,148.8 1,090.9 1,046.9 1,049.5 36 Corporate bonds 1,568.6 1,878.7 2,085.9 2,297.2 2,414.8 2,478.7 2,562.9 2,640.2 2,730.3 2,845.8 2,901.2 37 Bank loans n.e.c 77.3 107.5 93.2 93.0 97.3 100.4 100.2 106.8 105.1 113.5 133.2 38 Other loans and advances 198.5 288.7 395.8 438.3 450.9 450.7 467.2 473.2 462.4 470.8 491.2 39 Mortgages 46.8 71.6 76.7 82.9 81.1 85.1 84.6 84.2 85.9 87.6 86.9 By borrowing sector 40 Commercial banks 140.6 188.6 230.0 266.7 273.8 274.7 281.4 296.0 295.8 310.4 331.6 41 Bank holding companies 168.6 193.5 219.3 242.5 266.5 269.0 272.7 266.1 269.0 264.2 271.4 42 Savings institutions 160.3 212.4 260.4 287.7 295.1 294.4 305.6 295.1 280.5 275.3 274.5 43 Credit unions .6 1.1 3.4 3.4 3.2 3.5 3.8 4.9 5.5 6.0 6.3 44 Life insurance companies 1.8 2.5 3.2 2.5 1.9 1.9 2.8 3.1 3.7 4.0 4.2 45 Government-sponsored enterprises 995.3 1,273.6 1,591.7 1,825.8 1,888.7 1,955.8 2,037.4 2,114.0 2,161.8 2,197.2 2,260.5 46 Federally related mortgage pools 1,825.8 2,018.4 2,292.2 2,491.6 2,534.2 2,635.7 2,758.8 2,830.1 2,955.1 3,041.6 3,084.8 47 Issuers of asset-backed securities (ABSs) 1,076.6 1,398.0 1,610.3 1,812.0 1,884.5 1,937.3 2,020.3 2,131.4 2,187.3 2,248.2 2,302.3 48 Brokers and dealers 35.3 42.5 25.3 40.9 35.0 43.9 47.1 42.3 38.4 42.8 46.6 49 Finance companies 568.3 625.5 695.7 776.9 756.2 769.0 771.2 776.7 760.8 784.9 802.9 50 Mortgage companies 16.0 17.7 17.8 17.9 18.1 18.2 18.5 18.6 18.8 19.0 19.2 51 Real estate investment trusts (REITs) 96.1 158.8 165.1 167.8 166.2 168.9 168.3 170.2 172.1 178.4 183.0 52 Funding corporations 372.6 412.6 504.0 503.7 524.3 478.6 433.6 448.4 442.6 431.3 420.1 All sectors 53 Total credit market debt, domestic and foreign. 21,309.1 23,482.0 25,672.8 27,432.4 27,886.9 28,250.4 28,811.9 29,471.4 29,916.6 30,444.4 30,983.6 54 Open market paper 979.4 1,172.6 1,402.4 1,610.0 1,546.8 1,477.9 1,417.8 1,445.6 1,382.0 1,325.5 1,325.7 55 U.S. government securities 6,625.9 7,044.2 7,564.9 7,702.5 7,831.7 7,842.9 8,116.2 8,323.6 8,547.2 8,690.2 8,886.1 56 Municipal securities 1,367.5 1,464.3 1,532.5 1,567.8 1,597.5 1,629.8 1,635.3 1,685.4 1,707.5 1,758.2 1,783.8 57 Corporate and foreign bonds 3,607.2 4,170.9 4,622.0 5,028.3 5,251.1 5,416.0 5,526.2 5,691.8 5,839.7 5,996.7 6,039.4 58 Bank loans n.e.c 1,169.8 1,314.8 1,383.8 1,496.6 1,492.1 1,460.2 1,452.6 1,421.4 1,409.1 1,377.8 1,361.6 59 Other loans and advances 1,086.5 1,253.0 1,400.9 1,548.2 1,572.0 1,602.0 1,624.4 1,608.6 1,597.6 1,622.0 1,654.4 60 Mortgages 5,201.1 5,715.7 6,320.1 6,886.0 7,010.3 7,213.3 7,409.0 7,591.8 7,756.2 7,973.6 8,212.0 61 Consumer credit 1,271.6 1,346.6 1,446.1 1,593.1 1,585.3 1,608.1 1,630.5 1,703.3 1,677.2 1,700.3 1,720.6 1. Data in this table appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 5 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 11999988 11999999 22000000 Qi Q2 Q3 04 Ql Q2 Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 21,309.1 23,482.0 25,672.8 27,432.4 27,886.9 28,250.4 28,811.9 29,471.4 29,916.6 30,444.4 30,983.6 ? Domestic nonfederal nonfinancial sectors 3,110.2 3,357.4 3,671.5 3,542.8 3,488.1 3,426.6 3,409.2 3,463.3 3,476.0 3,519.6 3,447.7 Household 2,193.5 2,308.9 2,613.2 2,481.5 2,440.5 2,370.4 2,354.6 2,380.6 2,401.4 2,425.1 2,351.3 4 Nonfinancial corporate business 257.5 241.5 226.0 231.0 206.2 203.0 195.0 212.2 202.7 207.8 209.8 5 Nonfarm noncorporate business 54.2 67.5 64.4 63.2 64.0 64.1 64.9 65.4 66.2 67.1 66.5 6 State and local governments 605.0 739.4 767.8 767.0 777.4 789.1 794.6 805.1 805.6 819.7 820.1 7 Federal government 205.4 219.0 258.0 265.3 266.4 268.7 269.6 271.3 272.5 274.7 276.5 8 Rest of the world 2,097.7 2,278.2 2,354.6 2,621.1 2,706.0 2,766.8 2,837.5 2,954.4 3,000.6 3,139.1 3,283.3 Financial sectors 15,895.8 17,627.4 19,388.8 21,003.3 21,426.4 21,788.2 22,295.7 22,782.4 23,167.5 23,511.0 23,976.0 10 Monetary authority 431.4 452.5 478.1 511.8 523.9 535.1 534.1 551.7 575.4 590.7 604.2 11 Commercial banking 4,031.9 4,336.1 4,648.3 5,006.3 5,013.8 5,041.5 5,100.6 5,210.5 5,231.3 5,328.3 5,476.1 1? U.S.-chartered banks 3,450.7 3,761.4 4,080.0 4,419.5 4,420.8 4,463.5 4,513.5 4,610.1 4,629.3 4,719.7 4,858.3 13 Foreign banking offices in United States 516.1 504.5 487.4 511.3 516.6 501.3 509.3 510.7 507.7 512.6 521.2 14 Bank holding companies 27.4 26.5 32.7 20.5 22.3 21.6 21.3 24.7 27.7 28.1 27.7 15 Banks in U.S.-affiliated areas 37.8 43.8 48.3 55.0 54.1 55.1 56.5 65.0 66.6 67.9 68.8 16 Savings institutions 928.5 964.7 1,032.4 1,088.6 1,100.5 1,116.1 1,118.1 1,131.4 1,134.7 1,130.9 1,153.9 17 Credit unions 305.3 324.2 351.7 379.7 387.0 392.4 408.4 421.2 434.3 447.7 458.5 18 Bank personal trusts and estates 207.0 194.1 222.0 222.8 223.8 225.2 226.4 228.6 231.4 234.3 235.5 19 Life insurance companies 1,751.1 1,828.0 1,886.0 1,943.9 1,969.6 2,004.8 2,054.8 2,074.8 2,136.9 2,180.1 2,241.0 20 Other insurance companies 515.3 521.1 518.2 509.4 510.0 510.0 511.3 518.4 527.6 536.4 545.3 21 Private pension funds 674.6 651.2 668.2 701.6 706.8 718.0 720.6 721.9 728.7 740.2 749.1 22 State and local government retirement funds 632.5 704.6 751.4 806.0 788.3 807.6 789.0 788.4 806.0 792.4 784.1 7.3 Money market mutual funds 721.9 965.9 1,147.8 1,290.9 1,404.2 1,414.3 1,494.9 1,536.9 1,496.4 1,419.3 1,405.7 74 Mutual funds 901.1 1,028.4 1,076.8 1,097.8 1,113.9 1,160.3 1,188.2 1,223.8 1,276.8 1,291.6 1,335.0 75 Closed-end funds 93.3 98.5 106.8 100.5 98.7 97.5 103.6 107.3 112.5 113.1 116.0 26 Government-sponsored enterprises 938.3 1,252.3 1,543.5 1,807.1 1,877.7 1,956.1 2,026.1 2,114.3 2,163.8 2,199.9 2,245.5 27 Federally related mortgage pools 1,825.8 2,018.4 2,292.2 2,491.6 2,534.2 2,635.7 2,758.8 2,830.1 2,955.1 3,041.6 3,084.8 78 Asset-backed securities (ABSs) issuers 937.7 1,219.4 1,413.6 1,585.4 1,650.9 1,696.6 1,773.3 1,878.7 1,928.5 1,983.9 2,032.4 79 Finance companies 568.2 645.5 742.5 850.5 848.0 878.5 859.5 844.8 832.4 845.6 856.9 30 Mortgage companies 32.1 35.3 35.6 35.9 36.2 36.5 36.9 37.2 37.6 38.0 38.3 31 Real estate investment trusts (REITs) 50.6 45.5 42.9 36.6 37.6 37.9 39.8 43.3 49.9 57.9 64.1 37 Brokers and dealers 182.6 189.4 154.7 223.6 317.7 288.4 366.4 316.0 299.6 352.7 339.6 33 Funding corporations 166.7 152.3 276.0 313.4 283.7 235.7 184.9 203.0 208.6 186.6 206.3 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 21,309.1 23,482.0 25,672.8 27,432.4 27,886.9 28,250.4 28,811.9 29,471.4 29,916.6 30,444.4 30,983.6 Other liabilities 35 Official foreign exchange 48.9 60.1 50.1 46.1 42.8 43.4 49.0 46.8 45.7 52.0 53.1 36 Special drawing rights certificates 9.2 9.2 6.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 .37 Treasury currency 19.3 19.9 20.9 23.2 22.9 23.2 23.2 23.2 23.2 23.2 23.2 38 Foreign deposits 618.5 642.3 703.6 824.5 881.6 837.6 848.0 908.9 894.1 916.5 926.5 39 Net interbank liabilities 219.4 189.4 202.4 221.2 156.7 158.7 166.5 187.7 157.6 130.9 146.8 40 Checkable deposits and currency 1,286.1 1,333.3 1,484.5 1,413.1 1,404.9 1,448.4 1,485.1 1,601.4 1,567.2 1,640.0 1,698.0 41 Small time and savings deposits 2,474.2 2,626.5 2,671.6 2,860.4 2,962.7 2,992.4 3,047.6 3,127.6 3,229.6 3,257.6 3,338.5 42 Large time deposits 713.4 805.3 936.4 1,052.6 1,077.0 1,087.3 1,094.2 1,121.1 1,178.9 1,188.7 1,197.7 43 Money market fund shares 1,042.5 1,329.7 1,578.8 1,812.1 1,994.7 2,014.7 2,115.4 2,240.7 2,202.6 2,150.3 2,105.9 44 Security repurchase agreements 822.4 913.8 1,083.6 1,196.8 1,187.4 1,206.6 1,253.9 1,233.6 1,220.4 1,273.7 1,233.1 45 Mutual fund shares 2,989.4 3,613.1 4,538.5 4,434.6 3,990.4 4,259.5 3,753.1 4,135.5 4,247.0 3,926.6 3,418.9 46 Security credit 469.1 572.2 676.6 822.7 799.3 781.5 919.9 825.9 778.0 746.2 714.7 47 Life insurance reserves 665.0 718.3 783.9 819.1 823.0 840.3 844.0 880.0 904.2 915.2 928.3 48 Pension fund reserves 7,323.4 8,208.4 9,065.3 9,069.0 8,584.0 8,862.6 8,281.0 8,694.0 8,822.2 8,328.1 7,737.4 49 Trade payables 1,967.4 2,073.8 2,342.4 2,512.6 2,536.4 2,498.4 2,502.4 2,493.4 2,526.0 2,533.2 2,587.8 50 Taxes payable 151.1 170.7 193.9 215.6 223.3 222.5 251.4 229.9 241.3 252.9 240.3 51 Investment in bank personal trusts 942.5 1,001.0 1,130.4 1,095.8 1,007.9 1,063.3 955.4 1,025.3 1,035.2 970.1 888.2 52 Miscellaneous 6,733.1 7,633.7 8,500.3 9,427.9 9,862.5 10,140.3 10,545.9 10,091.1 10,104.6 10,369.1 10,882.0 53 Total liabilities 49,803.8 55,402.6 61,642.2 65,281.9 65,446.6 66,733.3 66,950.1 68,339.8 69,096.5 69,120.9 69,106.2 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.1 21.6 21.4 21.6 21.4 21.5 22.0 21.8 21.9 22.7 22.8 55 Corporate equities 13,301.7 15,577.3 19,581.2 17,611.9 15,347.5 16,281.6 13,673.4 15,245.5 15,264.1 13,363.0 10,960.1 56 Household equity in noncorporate business 4,052.7 4,285.7 4,544.3 4,765.8 4,807.7 4,823.5 4,865.8 4,824.9 4,845.0 4,906.5 4,947.4 Liabilities not identified as assets (—) 57 Treasury currency -6.3 -6.4 -7.1 -8.5 -9.4 -9.5 -9.8 -9.8 -10.4 -10.6 -10.9 58 Foreign deposits 535.0 542.8 585.7 627.4 673.0 631.3 644.9 694.1 685.0 717.7 720.1 59 Net interbank transactions -32.2 -26.5 -28.5 -4.3 1.1 3.8 4.5 11.1 21.8 18.3 16.2 60 Security repurchase agreements 172.9 230.6 266.4 385.0 341.4 376.2 396.6 346.3 355.6 390.2 292.4 61 Taxes payable 104.2 121.2 121.9 127.7 111.9 131.7 148.6 100.0 92.3 150.7 113.5 62 Miscellaneous -1,376.7 -1,956.2 -2,436.0 -2,968.9 -2,919.9 -2,862.5 -2,692.6 -3,203.2 -3,178.9 -3,223.2 -3,030.3 Floats not included in assets (—) 63 Federal government checkable deposits -8.1 -3.9 -9.8 -2.3 -2.8 -4.8 -5.9 -14.1 32.4 61.3 72.2 64 Other checkable deposits 26.2 23.1 22.3 24.0 21.1 25.5 19.2 28.6 26.3 31.4 25.8 65 Trade credit 128.1 84.8 91.7 117.7 84.6 63.8 48.7 134.0 87.8 40.3 39.2 66 Totals identified to sectors as assets 67,636.1 76,277.7 87,182.4 89,383.3 87,322.3 89,504.4 86,957.2 90,345.2 91,115.7 89,237.0 86,798.1 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • February 2003 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 2001 2002 2001 2002 2001 2002 Q4' Qlr Q2r Q3< Q4' Qir Q2r Q3< Q4r Qir Q2' Q3r Output (1997=100) Capacity (percent of 1997 output) Capacity utilization rate (percent)2 1 Total industry 108.9 109.3 110.5 111.4 145.0 145.4 145.9 146.2 75.1 75.1 75.7 76.2 2 Manufacturing 110.1 110.5 111.4 112.3 150.1 150.5 150.9 151.1 73.4 73.4 73.9 74.3 3 Manufacturing (NAICS) 110.2 110.8 111.8 112.6 151.2 151.8 152.2 152.5 72.9 73.0 73.5 73.8 4 Durable manufacturing 119.1 119.7 121.2 122.3 170.3 171.5 172.5 173.4 69.9 69.8 70.2 70.5 5 Primary metal 83.0 84.9 85.6 85.9 113.7 112.7 112.0 111.4 73.0 75.3 76.4 77.1 6 Fabricated metal products 97.9 98.0 99.1 99.5 138.8 139.0 139.3 139.4 70.5 70.5 71.2 71.3 7 Machinery 87.4 87.5 88.6 88.7 129.9 129.9 129.9 129.9 67.3 67.3 68.2 68.3 8 Computer and electronic products 215.7 216.2 219.6 222.6 336.5 344.0 350.1 355.4 64.1 62.9 62.7 62.6 9 Electrical equipment, appliances, and components 98.7 97.6 98.3 97.7 130.1 129.6 129.1 128.6 75.9 75.3 76.1 75.9 10 Motor vehicles and parts 108.2 112.8 116.8 121.7 143.8 144.9 145.9 147.1 75.3 77.9 80.0 82.7 11 Aerospace and miscellaneous transportation equipment 95.3 90.8 87.6 85.9 145.9 145.7 145.5 145.3 65.3 62.3 60.2 59.1 12 Nondurable manufacturing 98.6 99.1 99.7 100.1 128.1 127.9 127.7 127.5 77.0 77.5 78.1 78.5 13 Food, beverage, and tobacco products .... 99.6 100.8 100.8 100.1 126.0 125.9 125.8 125.7 79.0 80.1 80.2 79.7 14 Textile and product mills 81.5 82.1 83.3 82.9 113.4 112.8 112.3 111.7 71.9 72.8 74.2 74.2 15 Paper 93.1 91.7 94.2 95.7 115.0 114.5 114.2 114.0 81.0 80.1 82.5 84.0 16 Petroleum and coal products 101.5 103.3 103.3 102.3 114.4 114.7 114.9 115.2 88.7 90.1 89.9 88.7 17 Chemical 105.1 104.9 105.3 106.4 140.8 141.0 141.2 141.2 74.7 74.4 74.6 75.3 18 Plastics and rubber products 102.7 103.6 106.6 107.3 135.3 134.8 134.2 133.6 75.9 76.9 79.4 80.4 19 Other manufacturing (non-NAICS) 107.9 105.2 104.6 106.0 131.8 131.1 130.3 129.5 81.9 80.3 80.3 81.8 20 Mining 95.6 94.0 93.4 93.5 110.4 110.3 110.2 110.1 86.6 85.2 84.8 84.9 21 Electric and gas utilities 103.5 105.6 110.2 112.5 121.8 123.5 125.5 127.6 85.0 85.5 87.8 88.2 MEMOS 22 Computers, communications equipment, and semiconductors 280.5 282.2 290.3 295.5 444.5 456.8 466.7 475.3 63.1 61.8 62.2 62.2 23 Total excluding computers, communications equipment, and semiconductors 99.3 99.6 100.6 101.3 130.2 130.3 130.4 130.5 76.3 76.5 77.1 77.6 24 Manufacturing excluding computers, communications equipment, and semiconductors 98.9 99.2 99.9 100.5 132.7 132.7 132.6 132.6 74.6 74.8 75.3 75.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A41 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1—Continued Seasonally adjusted 1973 1975 Previous cycle3 Latest cycle4 2001 2002 SSeerriieess High Low High Low High Low Nov. June July Aug.' Sept.' Oct.' NOV.P Capacity utilization rate (percent)2 1 Total industry 88.8 74.0 86.6 70.8 85.1 78.6 75.1 75.9r 76.4r 76.1 76.0 75.6 75.6 2 Manufacturing 88.0 71.6 86.3 68.6 85.5 77.2 73.4 74.1' 74.3' 74.3 74.1 73.8 73.8 3 Manufacturing (NAICS) 88.1 71.4 86.3 67.9 85.5 77.0 72.9 73.7' 74.0' 73.9 73.6 73.3 73.3 4 Durable manufacturing 88.9 69.6 87.0 63.1 84.5 73.4 70.0 70.5' 70.6' 70.8 70.2 69.9 70.2 5 Primary metal 100.9 68.9 91.3 47.2 95.3 75.2 74.6 77.1' 76.2' 78.7 76.5 79.1 78.9 6 Fabricated metal products .... 91.8 69.6 83.1 61.7 80.1 71.0 70.0 71.3' 71.5' 71.2 71.2 71.7 71.1 7 Machinery 94.2 74.2 92.8 58.3 84.7 72.9 67.6 68.5' 68.0' 68.8 67.9 66.9 66.9 8 Computer and electronic products 87.0 66.9 89.8 77.3 81.5 76.4 63.9 62.7' 62.6' 62.7 62.5 62.2 62.0 9 Electrical equipment, appliances, and components 99.3 68.5 91.9 64.4 87.5 75.0 75.7 76.6' 76.4' 76.2 75.1 75.8 77.0 10 Motor vehicles and parts 95.3 55.3 96.2 45.2 90.0 56.6 75.8 81. lr 83.2' 82.9 82.1 80.0 83.1 11 Aerospace and miscellaneous transportation equipment . 75.0 66.3 84.6 69.8 88.9 81.9 65.3 59.7' 59.0' 59.4 59.0 59.2 58.8 12 Nondurable manufacturing 87.5 72.5 85.7 75.6 86.9 81.8 77.0 78.3' 78.7' 78.4 78.4 78.0 77.8 13 Food, beverage, and tobacco products 85.9 78.0 84.3 80.2 85.5 81.3 78.9 80.31 so.o1 79.6 79.5 79.6 78.8 14 Textile and product mills .... 89.8 62.8 90.1 72.3 91.1 77.1 71.6 74.4' 75.01" 73.9 73.8 73.5 74.1 15 Paper 97.4 74.7 95.6 81.3 94.0 85.4 81.0 83.0' 83.5' 84.0 84.4 83.9 83.7 16 Petroleum and coal products . . 93.2 81.0 92.3 71.1 88.9 82.5 89.3 89.1' 89.5' 89.2 87.6 86.3 88.4 17 Chemical 85.0 68.9 83.0 67.9 85.6 80.8 74.8 74.9' 75.7R 75.2 75.1 74.4 74.2 18 Plastics and rubber products .. 96.3 61.6 90.5 70.5 91.2 77.1 75.5 80.2' 80.3' 80.3 80.4 79.9 79.2 19 Other manufacturing (non-NAICS). 85.7 75.7 88.1 85.7 90.2 79.1 81.7 81.2' 80.9' 81.7 82.8 82.7 82.3 20 Mining 93.6 87.6 94.2 78.6 85.6 83.3 86.8 84.9' 85.7' 85.3 83.8 83.9 84.4 21 Electric and gas utilities 96.2 82.7 87.9 77.2 92.6 84.2 84.3 87.2' 89.6' 86.5 88.4 86.3 85.9 MEMOS 22 Computers, communications equipment, and semiconductors . 84.5 63.1 89.9 75.6 80.4 74.6 63.0 62.4' 62.1' 62.4 62.0 61.9 61.7 23 Total excluding computers, communications equipment, and semiconductors 89.1 74.3 86.6 70.5 85.5 78.8 76.2 77.3' 77.9' 77.6 77.5 77.0 77.1 24 Manufacturing excluding computers communications equipment, and semiconductors . 88.3 71.9 86.3 68.1 86.1 77.3 74.6 75.6R 75.9' 75.9 75.7 75.4 75.4 Note. The statistics in the G.17 release cover output, capacity, and capacity utilization in the data are also available on the Board's web site http://www.federalreserve.gov/releases/gl7. industrial sector, which the Federal Reserve defines as manufacturing, mining, and electric The latest historical revision of the industrial production index and the capacity utilization and gas utilities. Manufacturing consists of those industries included in the North American rates was released in December 2002. The recent annual revision will be described in an Industry Classification System, or NAICS, manufacturing plus those industries—logging and upcoming issue of the Bulletin. newspaper, periodical, book and directory publishing—that have traditionally been consid- 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally ered manufacturing and included in the industrial sector. adjusted index of industrial production to the corresponding index of capacity. 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. The 3. Monthly highs, 1978-80; monthly lows, 1982. 4. Monthly highs, 1988-89; monthly lows, 1990-91. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • February 2003 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 2001 2002 „ roup pro- 2001 por- avg. tion Nov.r Dec.' Jan.' Feb.' Mar.' Apr.' May' June' July' Aug.' Sept.' Oct.' NOV.P Index (1997= 100) MAJOR MARKETS 1 Total IP 100.0 111.2 108.8 108.3 109.0 109.2 109.6 110.1 110.4 110.8 111.6 111.3 111.2 110.7 110.8 Market groups 2 Final products and nonindustrial supplies 60.8 110.8 108.2 108.0 108.3 108.5 108.9 109.1 109.3 109.6 110.1 109.8 109.8 109.2 109.3 i Consumer goods 29.0 106.5 105.5 105.7 106.2 106.7 107.4 107.5 107.3 107.8 108.5 107.8 107.9 107.1 107.7 4 Durable 5.8 112.2 112.3 114.0 114.2 115.3 115.7 116.5 117.2 118.6 120.0 119.3 118.7 116.9 120.7 5 Automotive products 2.5 115.6 118.0 120.5 120.2 121.3 121.7 123.8 124.2 127.4 130.6 130.6 129.3 125.9 132.2 6 Home electronics 0.4 142.9 147.0 149.9 154.3 153.1 150.2 139.9 143.8 135.3 137.0 135.4 142.6 138.5 140.9 7 Appliances, furniture, carpeting 1.3 106.1 104.9 104.9 105.7 107.9 108.1 108.2 109.1 107.5 106.9 104.5 104.6 104.8 106.7 8 Miscellaneous goods 1.6 99.8 95.4 96.4 96.4 97.1 98.2 98.1 98.9 100.2 99.2 98.3 97.8 98.3 98.3 9 Nondurable 23.2 104.3 102.9 102.7 103.3 103.6 104.4 104.4 103.9 104.1 104.6 103.8 104.2 103.7 103.4 10 Non-energy 20.2 103.8 102.8 102.7 103.0 103.0 103.5 102.8 102.2 102.8 102.8 102.4 102.6 102.3 101.7 11 Foods and tobacco 10.4 99.5 98.7 98.9 99.6 100.2 100.8 100.4 100.0 100.2 99.8 99.2 99.1 99.3 98.3 12 Clothing 2.4 78.0 73.4 73.4 73.0 72.7 74.4 72.7 72.9 72.9 73.2 71.3 72.1 70.2 71.0 13 Chemical products 4.6 121.1 121.4 120.5 120.7 119.9 120.1 118.5 116.8 118.3 119.5 119.0 119.5 118.4 118.5 14 Paper products 2.9 110.6 109.3 109.0 107.8 106.6 107.2 106.0 106.2 107.2 107.1 108.4 109.8 109.8 109.0 15 Energy 3.0 106.9 103.8 102.8 105.0 107.1 109.4 112.8 112.5 110.9 114.0 111.6 112.8 110.7 112.2 16 Business equipment 13.2 117.3 109.7 108.6 108.8 108.1 107.8 107.7 108.0 108.0 107.3 108.1 106.9 106.2 106.0 17 Transit 2.5 97.2 90.9 89.5 87.5 86.9 84.8 83.2 82.0 81.1 80.2 81.1 79.7 78.1 77.4 18 Information processing 5.4 165.4 154.7 155.0 155.3 154.3 155.5 154.7 154.9 154.9 153.5 153.7 152.1 152.9 152.1 19 Industrial and other 5.3 97.7 91.6 90.0 91.1 90.5 90.3 91.1 91.9 92.2 92.0 92.9 92.0 91.3 91.5 20 Defense and space equipment 3.4 100.1 99.5 100.3 99.6 99.7 99.8 99.9 100.6 101.2 101.2 101.9 102.0 102.6 102.1 21 Construction supplies 5.4 105.5 102.9 102.5 102.6 103.1 104.0 104.0 104.6 104.5 104.4 104.8 104.5 104.2 103.5 22 Business supplies 9.1 121.9 119.7 119.0 119.2 119.4 119.7 120.7 121.5 121.8 123.2 122.6 123.6 123.2 122.8 23 Materials 39.2 111.8 109.7 108.8 110.0 110.2 110.7 111.6 112.2 112.6 113.8 113.6 113.4 112.9 113.0 24 Non-energy 29.6 115.7 113.2 112.1 113.4 113.7 114.0 115.0 115.8 116.4 117.2 117.4 117.2 116.9 117.0 25 Durable 20.7 127.9 124.3 123.5 124.9 125.6 125.8 127.1 127.8 128.6 129.4 130.0 129.5 129.6 130.1 26 Consumer parts 4.0 104.6 104.0 106.2 107.6 109.2 109.2 110.8 110.1 110.4 113.4 112.3 112.4 111.9 114.6 27 Equipment parts 7.5 186.0 178.8 176.7 178.1 177.6 177.6 179.8 182.3 183.6 184.2 186.3 185.7 185.3 185.6 28 Other 9.2 98.1 95.4 93.9 95.1 95.9 96.0 96.7 97.2 97.9 97.7 98.3 97.7 98.2 97.7 29 Nondurable 8.9 97.1 95.8 94.3 95.5 95.4 95.9 96.5 97.3 97.6 98.4 98.2 98.3 97.5 97.1 30 Textile 1.1 81.2 75.8 75.6 76.2 76.3 77.7 77.8 78.2 78.5 79.6 77.8 78.4 78.1 77.7 31 Paper 1.8 95.8 94.1 92.1 93.4 92.6 91.9 93.3 94.8 93.6 95.8 96.1 96.7 96.9 96.2 32 Chemical 4.0 97.8 97.0 94.6 97.0 97.2 98.8 99.6 100.4 100.6 101.3 100.7 100.2 99.0 98.5 33 Energy 9.6 97.5 96.6 96.2 97.1 97.1 97.9 98.6 98.5 98.6 101.0 99.3 99.1 98.2 98.6 SPECIAL AGGREGATES 34 Total excluding computers, communication equipment, and semiconductors 94.7 101.3 99.3 98.7 99.3 99.6 99.9 100.3 100.5 100.8 101.5 101.2 101.2 100.6 100.7 35 Total excluding motor vehicles and parts 94.3 111.5 108.8 108.1 108.8 108.9 109.4 109.7 110.1 110.3 110.8 110.5 110.5 110.1 109.9 Gross value (billions of 1996 dollars, annual rates) 36 Final products and nonindustrial supplies 100.0 2,808.7 2,756.8 2,756.7 2,764.9 2,774.9 2,787.1 2,796.7 2,802.2 2,809.9 2,828.0 2,821.5 2,817.8 2,794.7 2,812.1 37 Final products 77.2 2,026.0 1,990.3 1,993.4 2,001.1 2,006.4 2,013.9 2,020.7 2,021.4 2,028.7 2,042.2 2,038.1 2,031.4 2,011.5 2,031.1 38 Consumer goods 51.9 1,357.4 1,352.5 1,358.7 1,365.3 1,371.5 1,380.1 1,386.3 1,384.8 1,390.2 1,404.1 1,395.9 1,394.3 1,379.1 1,398.4 39 Equipment total 25.3 669.0 632.9 628.6 629.2 627.5 625.4 625.3 628.1 629.9 627.9 633.6 627.7 623.6 621.8 40 Nonindustrial supplies 22.8 782.8 766.6 763.2 763.7 768.5 773.2 776.1 780.9 781.3 785.9 783.5 786.6 783.7 781.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A43 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued Monthly data seasonally adjusted 1992 2001 2002 Group N c A od IC e2 S p p r o o r - - 2 a 0 v 0 g 1 . tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.' Sept.' Oct.' NOV.P Index (1997= 100) INDUSTRY GROUPS 41 Manufacturing 85.4 112.6 110.1 109.6 110.3 110.4 110.7 111.0 111.4 111.9 112.3 112.4 112.1 111.6 111.7 42 Manufacturing (NAICS) 79.1 112.8 110.3 109.8 110.6 110.8 111.0 111.4 111.9 112.2 112.7 112.8 112.4 111.9 112.1 43 Durable manufacturing 43.0 122.9 119.2 118.9 119.6 119.8 119.8 120.5 121.2 121.8 122.2 122.7 122.0 121.6 122.3 44 Wood products 321 1.5 99.7 99.0 99.9 100.6 99.9 101.7 100.8 101.0 102.2 101.9 102.5 100.7 99.4 97.7 45 Nonmetallic mineral products 327 2.0 106.9 107.4 105.7 106.0 106.4 106.6 107.4 107.7 106.6 107.7 108.5 109.8 109.1 109.4 46 Primary metal 331 2.7 88.2 84.9 78.2 84.3 85.3 85.1 84.6 85.9 86.2 85.0 87.6 85.0 87.9 87.4 47 Fabricated metal products . 332 5.3 100.5 97.1 97.6 97.7 98.2 98.2 98.4 99.7 99.3 99.7 99.3 99.4 100.0 99.3 48 Machinery 333 5.7 95.1 87.8 85.9 87.2 87.3 88.0 88.3 88.5 88.9 88.4 89.4 88.2 86.8 86.9 49 Computer and electronic products 334 8.8 223.7 215.2 215.8 216.3 215.5 216.9 217.9 220.0 220.8 221.5 223.0 223.2 223.3 223.3 50 Electrical equipment, appliances, and components 335 2.5 102.3 98.5 98.3 98.4 97.7 96.8 97.2 98.9 98.7 98.4 98.0 96.5 97.3 98.7 51 Motor vehicles and parts . . 3361-3 5.7 107.6 109.0 112.0 111.8 113.4 113.3 115.9 115.8 118.6 122.1 122.0 121.1 118.3 123.4 52 Aerospace and miscellaneous transportation equipment 3364-9 4.5 98.4 95.3 93.4 92.1 90.9 89.5 88.3 87.6 86.9 85.7 86.3 85.7 86.0 85.4 53 Furniture and related products 337 1.5 104.9 102.4 101.3 101.9 102.6 101.7 101.8 101.5 101.6 101.4 100.5 101.4 100.9 101.9 54 Miscellaneous 339 2.8 109.3 105.7 107.7 108.2 107.8 107.4 109.6 110.2 110.7 110.6 110.2 109.1 109.5 108.7 55 Nondurable manufacturing . . 36.1 99.8 98.6 98.0 98.8 99.0 99.5 99.5 99.7 99.9 100.4 100.0 100.0 99.4 99.1 56 Food, beverage, and tobacco products .... 311,2 10.9 100.0 99.4 99.7 100.2 100.8 101.4 101.0 100.6 100.9 100.5 100.0 99.9 100.0 99.0 57 Textile and product mills .. 313,4 1.8 86.2 81.2 80.9 81.7 81.8 83.0 82.9 83.6 83.4 83.9 82.5 82.3 81.9 82.3 58 AAppppaarreell aanndd lleeaatthheerr 315,6 2.2 77.9 73.2 73.2 72.9 72.5 74.1 72.5 72.7 72.6 73.0 71.2 71.8 70.1 70.9 59 PPaappeerr 322 3.3 95.3 93.1' 91.5' 91.9' 91.8' 91.6' 93.0' 95.W 94.7' 95.2' 95.8 96.1 95.5 95.2 60 Printing and support 323 2.8 98.0 96.9' 95.6' 97.8' 96.9' 95.2' 95.5' 96.2' 95.5' 98.4' 98.6 99.9 100.1 99.7 61 Petroleum and coal products 324 1.4 101.6 102.1' 100.3' 102.4' KM.O' 103.5' 104.2' 103.4' 102.4' 103.0' 102.7 101.0 99.7 102.2 62 Chemical 325 10.3 105.3 105.3' 103.7' 104.9' 104.6' 105.2' 105.1' 105.01 105.7' 106.9' 106.2 106.1 105.1 104.8 63 Plastics and rubber products 326 3.4 105.2 102.2' 102.5' 102.5' 103.3' 105.1' 105.7' 106.7' 107.4' 107.5' 107.3 107.2 106.4 105.4 64 Other manufacturing (non-NAICS) 1133,5111 4.3 109.1 107.7' 107.1' 105.8' 104.9' 105.0' 104.1' 104.2' 105.5' IOS^ 105.8 107.1 106.7 106.0 65 Mining 21 6.6 96.6 95.8' 95. lr 94.4' 94.2' 93.6' 93.4' 93.4' 93.5' 94.4' 93.9 92.2 92.4 93.0 66 Utilities 2211,2 10.1 105.6 102.7' 102.2' 103.7' 105.2' MCC 110.6' 110.1' 110.1' 113.7' 110.4 113.3 111.3 111.3 67 Electric 2211 8.6 107.1 105.7' 104.5' 106.1' 107.1' lio.r 112.5' 111.2' 111.4' 115.7' 112.2 115.8 113.1 112.8 68 Natural gas 2212 1.6 97.1 86.9' 89.9' 90.9' 95.(r 96.9' 100.2' 104.4' 103.2' 102.7' 100.8 99.9 101.6 103.6 69 Manufacturing excluding computers, communications equipment, and semiconductors 78.0 101.0 99.01 98.5' 99.1' 99.2' 99.4' 99.5' 99.9' 100.2' 100.6' 100.6 100.4 99.9 100.0 70 Manufacturing excluding motor vehicles and parts 77.6 113.0 110.2' 109.4' 110.2' 110.2' 110.5' 110.5' 111.0' 111.3' 111.4' 111.5 111.3 111.1 110.7 Note. The statistics in the G.17 release cover output, capacity, and capacity utilization in the 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data industrial sector, which the Federal Reserve defines as manufacturing, mining, and electric are also available on the Board's web site http://www.federalreserve.gov/releases/gl7. The and gas utilities. Manufacturing consists of those industries included in the North American latest historical revision of the industrial production index and the capacity utilization rates Industry Classification System, or NAICS, manufacturing plus those industries—logging and was released in December 2002. The recent annual revision will be described in an upcoming newspaper, periodical, book and directory publishing—that have traditionally been consid- issue of the Bulletin. ered manufacturing and included in the industrial sector. 2. North American Industry Classification System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 International Statistics • February 2003 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 2001 2002 IItteemm ccrreeddiittss oorr ddeebbiittss 11999999 22000000 22000011 Q3 Q4 QL Q2R Q3P 1 Balance on current account -292,856 -410,341 -393,371 -91,331 -95,086 -112,454 -127,611 -127,041 2 Balance on goods and services -262,237 -378,681 -358,290 -79,778 -88,028 -95,492 -109,313 -110,861 3 Exports 957,146 1,064,239 998,022 242,325 232,930 233,252 244,540 249,409 4 Imports -1,219,383 -1,442,920 -1,356,312 -322,103 -320,958 -328,744 -353,853 -360,270 5 Income, net 18,138 21,782 14,382 807 6,521 -946 -5,287 -2,959 6 Investment, net 23,877 27,651 20,539 2,345 8,102 682 -3,629 -1,375 7 Direct 75,009 88,862 102,595 23,908 28,602 22,069 18,795 18,821 8 Portfolio -51,132 -61,211 -82,056 -21,563 -20,500 -21,387 -22,424 -20,196 9 Compensation of employees -5,739 -5,869 -6,157 -1,538 -1,581 -1,628 -1,658 -1,584 10 Unilateral current transfers, net ^18,757 -53,442 ^19,463 -12,360 -13,579 -16,016 -13,011 -13,221 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,750 -941 -486 77 143 133 42 172 12 Change in U.S. official reserve assets (increase, -) 8,747 -290 -4,911 -3,559 -199 390 -1,843 -1,416 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) 10 -722 -630 -145 -140 -109 -107 -132 15 Reserve position in International Monetary Fund 5,484 2,308 -3,600 -3,242 83 652 -1,607 -1,136 16 Foreign currencies 3,253 -1,876 -681 -172 -142 -153 -129 -148 17 Change in U.S. private assets abroad (increase, -) -489,066 -605,258 -365,565 28,460 -100,032 -26,441 -129,278 25,164 18 Bank-reported claims2 -76,263 -148,657 -128,705 69,576 -83,682 727 -68,655 46,419 19 Nonbank-reported claims -95,466 -150,805 -14,358 -9,479 37,210 65 -16,693 -12,087 20 U.S. purchase of foreign securities, net -128,436 -127,502 -94,662 10,087 -26,090 2,047 -9,675 18,295 21 U.S. direct investments abroad, net -188,901 -178,294 -127,840 -41,724 -27,470 -29,280 -34,255 -27,463 22 Change in foreign official assets in United States (increase, +) 43,666 37,640 5,224 16,882 5,086 7,641 47,252 9,319 23 U.S. Treasury securities 12,177 -10,233 10,745 15,810 16,760 -582 15,193 1,424 24 Other U.S. government obligations 20,350 40,909 20,920 -216 7,630 7,296 6,548 10,885 25 Other U.S. government liabilities2 -2,740 -1,909 -1,882 89 -504 -790 54 999 26 Other U.S. liabilities reported by U.S. banks2 12,964 5,746 -30,278 -782 -20,507 991 24,531 ^1,824 27 Other foreign official assets3 915 3,127 5,719 1,981 1,707 726 926 835 28 Change in foreign private assets in United States (increase, +) 698,813 978,346 747,582 1,007 245,711 105,855 157,055 139,191 29 U.S. bank-reported liabilities4 54,232 116,971 110,667 -45,567 85,598 -11,051 32,240 8,299 30 U.S. nonbank-reported liabilities 78,383 174,251 82,353 -25,154 1,170 32,345 21,056 15,961 31 Foreign private purchases of U.S. Treasury securities, net -14,497 -76,965 -7,670 -15,470 27,229 -7,282 -5,124 54,691 32 U.S. currency flows 22,407 1,129 23,783 8,203 10,497 4,525 7,183 2,556 33 Foreign purchases of other U.S. securities, net 298,834 455,213 407,653 64,787 99,320 71,095 104,404 46,647 34 Foreign direct investments in United States, net 289,454 307,747 130,796 14,208 21,897 16,223 -2,704 11,037 35 Capita] account transactions, net5 -3,340 837 826 206 205 208 200 223 36 Discrepancy 31,286 7 10,701 48,258 -55,828 24,668 54,183 -45,612 37 Due to seasonal adjustment -10,286 1,721 10,019 1,256 -14,063 38 Before seasonal adjustment 31,286 7 10,701 58,544 -57,549 14,649 52,927 -31,549 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) 8,747 -290 -4,911 -3,559 -199 390 -1,843 -1,416 40 Foreign official assets in United States, excluding line 25 (increase, +) 46,406 39,549 7,106 16,793 5,590 8,431 47,198 8,320 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 1,621 12,000 -1,725 -4,081 3,382 -8,532 838 -1,299 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^11. 5. Consists of capital transfers (such as those of accompanying migrants entering or 2. Associated primarily with military sales contracts and other transactions arranged with leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced or through foreign official agencies. nonfinancial assets. 3. Consists of investments in U.S. corporate stocks and in debt securities of private SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current corporations and state and local governments. Business. 4. Reporting banks included all types of depository institutions as well as some brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A45 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 2002 AAsssseett 11999999 22000000 22000011 May June July Aug. Sept. Oct. Nov. Dec.P 1 Total 71,516 67,647 68,654 69,579 74,696 74,751 75,307 75,860 75,499 75,690r 79,006 2 Gold stock1 11,048 11,046 11,045 11,044 11,044 11,042 11,042 11,042 11,042 11,043' 11,043 3 Special drawing rights2-3 10,336 10,539 10,774 11,297 11,645 11,575 11,752 11,710 11,700 11,855 12,166 4 Reserve position in International Monetary Fund2 17,950 14,824 17,854 16,498 19,841 19,863 20,043 20,857 20,586 20,480 21,979 5 Foreign currencies4 32,182 31,238 28,981 30,740 32,166 32,271 32,470 32,251 32,171 32,312 33,818 1. Gold held "under earmark" at Federal Reserve Banks for foreign and international SDR holdings and reserve positions in the IMF also have been valued on this basis since July accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold 1974. stock is valued at $42.22 per fine troy ounce. 3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year 2. Special drawing rights (SDRs) are valued according to a technique adopted by the indicated, as follows; 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979— International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of $1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs. exchange rates for the currencies of member countries. From July 1974 through December 4. Valued at current market exchange rates. 1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 2002 AAsssseett 11999999 22000000 22000011 May June July Aug. Sept. Oct. Nov. Dec.'' 1 Deposits 71 215 61 127 90 164 86 150 89 78c 136 Held in custody 2 U.S. Treasury securities2 632,482 594,094 592,630 605,501 619,226 635,036 638,003 644,381 647,165 669,092 678,106 3 Earmarked gold3 9,933 9,451 9,099 9,084 9,077 9,071 9,064 9,057 9,050 9,045 9,045 1. Excludes deposits and U.S. Treasury securities held for international and regional 3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not organizations included in the gold stock of the United States. 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury securities, in each case measured at face (not market) value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 International Statistics • February 2003 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2000 2000 2001 2002 IItteemm 11999999 Mar.6 Mar.6 Dec. Dec. July Aug. Sept. Oct.p 1 Total1 806,318 829,290 958,725 975,304 987,572 1,048,087 1,050,781 1,051,814 1,049,808 By type 2 Liabilities reported by banks in the United States2 138,847 136,577 136,577 144,593 123,429 143,142 139,577 144,286 137,939 3 U.S. Treasury bills and certificates3 156,177 164,781 164,781 153,010 161,719 188,486 189,301 185,688 188,976 U.S. Treasury bonds and notes 4 Marketable 422,266 430,243 465,111 450,832 454,306 449,735 450,370 446,859 446,306 5 Nonmarketable4 6,111 5,734 5,734 5,348 3,411 3,020 3,040 3,058 3,078 6 U.S. securities other than U.S. Treasury securities5 82,917 91,955 186,522 221,521 244,707 263,704 268,493 271,923 273,509 By area 1 Europe1 244,805 251,815 238,548 240,325 243,452 256,539 255,244 260,393 254,352 8 Canada 12,503 13,683 15,016 13,727 13,440 10,682 10,886 10,097 10,300 9 Latin America and Caribbean 73,518 77,195 70,884 70,442 71,103 62,709 61,887 62,094 64,162 10 Asia 463,703 474,269 612,116 626,017 635,180 692,309 695,673 692,823 694,272 11 Africa 7,523 7,979 13,504 14,690 15,167 15,233 15,257 14,514 15,524 12 Other countries 4,266 4,349 8,655 10,101 9,228 10,613 11,832 11,891 11,196 1. Includes the Bank for International Settlements. 6. Data in the two columns shown for this date reflect different benchmark bases for 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, foreigners' holdings of selected U.S. long-term securities. Figures in the first column are negotiable time certificates of deposit, and borrowings under repurchase agreements. comparable to those for earlier dates; figures in the second column are based in part on a 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official benchmark survey as of end-March 2000 and are comparable to those shown for following institutions of foreign countries. dates. 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of SOURCE. Based on U.S. Department of the Treasury data and on data reported to the zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning Treasury by banks (including Federal Reserve Banks) and securities dealers in the United March 1990, 30-year maturity issue; Venezuela, beginning December 1990, 30-year maturity States, and in periodic benchmark surveys of foreign portfolio investment in the United issue; Argentina, beginning April 1993, 30-year maturity issue. States. 5. Debt securities of U.S. government corporations and federally sponsored agencies, and U.S. corporate stocks and bonds. 3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS Reported by Banks in the United States1 Payable in Foreign Currencies Millions of dollars, end of period 2001 2002 IItteemm 11999988 11999999 22000000 Dec/ Mar.' June' Sept. 1 Banks' liabilities 101,125 88,537 77,779 79,363 74,955 89,892 81,761 ?. Banks' claims 78,162 67,365 56,912 74,840 77,746 90,695 85,292 3 Deposits 45,985 34,426 23,315 44,094 46,778 51,933 44,638 4 Other claims 32,177 32,939 33,597 30,746 30,968 38,762 40,654 5 Claims of banks' domestic customers2 20,718 20,826 24,411 17,631 16,642 15,848 20,475 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A47 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 IItteemm 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct.? BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,408,740 1,511,410 1,655,381 1,690,356 1,714,564 1,731,188 1,708,496 l,764,902r 1,751,860' 1,845,883 2 Banks' own liabilities 971,536 1,077,636 1,180,417 1,208,236 1,218,557 1,198,097 1,178,301 1,224,916' 1,217,732' 1,305,690 3 Demand deposits 42,884 33,365 33,603 31,392 32,060 34,600 32,558 31,428 32,026 31,607 4 Time deposits2 163,620 187,883 155,466 139,284 136,391 130,408 123,892 125,270r 120,098' 127,915 5 Other3 155,853 171,401 199,727 224,885 235,758 237,427 257,097 261,964 277,600 268,268 6 Own foreign offices4 609,179 684,987 791,621 812,675 814,348 795,662 764,754 806,254 788,008' 877,900 7 Banks' custodial liabilities5 437,204 433,774 474,964 482,120 496,007 533,091 530,195 539,986r 534,128 540,193 8 U.S. Treasury bills and certificates6 185,676 177,846 188,028 183,012 191,266 208,279 222,361 225,605 222,656' 221,817 9 Short-term agency securities7 n.a. n.a. 65,534 69,525 75,157 83,613 67,985 68,968 70,739' 74,505 10 Other negotiable and readily transferable instruments8 132,617 145,840 91,147 95,378 94,061 96,154 102,518 105,331 104,735 105,447 11 Other 118,911 110,088 130,255 134,205 135,523 145,045 137,331 140,082r 135,998 138,424 12 Nonmonetary international and regional organizations9 15,276 12,542 10,807 14,441 12,129 11,568 11,495 10,540 11,596 13,153 13 Banks' own liabilities 14,357 12,140 10,169 13,427 11,756 11,138 10,993 9,986 10,808 12,538 14 Demand deposits 98 41 35 19 14 32 15 34 52 61 15 Time deposits2 10,349 6,246 3,756 6,194 6,730 6,401 7,394 6,294 5,502 6,156 16 Other3 3,910 5,853 6,378 7,214 5,012 4,705 3,584 3,658 5,254 6,321 17 Banks' custodial liabilities5 919 402 638 1,014 373 430 502 554 788 615 18 U.S. Treasury bills and certificates6 680 252 577 970 328 407 481 532 764 597 19 Short-term agency securities7 n.a. n.a. 40 21 18 0 0 0 0 0 20 Other negotiable and readily transferable instruments8 233 149 21 21 27 23 21 22 18 18 21 Other 6 1 0 2 0 0 0 0 6 0 ?.?, Official institutions10 295,024 297,603 285,148 288,927 301,552 325,086 331,628 328,878r 329,974' 326,915 23 Banks' own liabilities 97,615 96,989 83,828 83,948 86,402 92,972 93,555 89,340r 96,473' 91,468 24 Demand deposits 3,341 3,952 2,988 1,827 2,002 1,707 2,146 1,946 1,900 2,915 25 Time deposits2 28,942 35,573 19,467 15,331 15,514 14,551 13,458 14,405r 13,275' 13,902 26 Other3 65,332 57,464 61,373 66,790 68,886 76,714 77,951 72,989r 81,298' 74,651 27 Banks' custodial liabilities5 197,409 200,614 201,320 204,979 215,150 232,114 238,073 239,538 233,501 235,447 28 U.S. Treasury bills and certificates6 156,177 153,010 161,719 155,770 162,516 176,178 188,486 189,301 185,688 188,976 29 Short-term agency securities7 n.a. n.a. 36,351 45,910 49,374 51,634 45,257 45,208 44,161 42,841 30 Other negotiable and readily transferable instruments8 41,182 47,366 2,180 2,702 2,455 3,280 3,496 3,834 2,708 2,850 31 Other 50 238 1,070 597 805 1,022 834 1,195 944 780 32 Banks11 900,379 972,932 1,071,951 1,103,022 1,113,832 1,102,180 1,054,340 1,095,315' 1,082,818' 1,191,468 33 Banks' own liabilities 728,492 821,306 913,813 936,200 940,930 913,776 875,065 911,686r 901,414' 1,000,220 34 Unaffiliated foreign banks 119,313 136,319 122,192 123,525 126,582 118,114 110,311 105,432r 113,406' 122,320 35 Demand deposits 17,583 15,522 13,091 12,185 12,875 14,620 12,790 11,804 11,391 10,989 36 Time deposits2 48,140 66,904 53,105 43,727 41,364 37,094 31,780 33,899 30,886 35,676 37 Other3 53,590 53,893 55,996 67,613 72,343 66,400 65,741 59,729r 71,129' 75,655 38 Own foreign offices4 609,179 684,987 791,621 812,675 814,348 795,662 764,754 806.254 788,008' 877,900 39 Banks' custodial liabilities5 171,887 151,626 158,138 166,822 172,902 188,404 179.275 183,629r 181,404 191,248 40 U.S. Treasury bills and certificates6 16,796 16,023 13,477 13,016 14,442 16,110 17,497 17,737 17,095 16,647 41 Short-term agency securities7 n.a. n.a. 7,831 3,456 6,924 12,439 2,876 2,975 6,819 14,573 42 Other negotiable and readily transferable instruments8 45,695 36,036 33,102 37,267 37,377 36,557 43,466 45,169 43,688 43,742 43 Other 109,396 99,567 103,728 113,083 114,159 123,298 115,436 117,748r 113,802 116,286 44 Other foreigners 198,061 228,333 287,475 283,966 287,051 292,354 311,033 330,169' 327,472' 314,347 45 Banks' own liabilities 131,072 147,201 172,607 174,661 179,469 180,211 198,688 213,904' 209,037' 201,464 46 Demand deposits 21,862 13,850 17,489 17,361 17,169 18,241 17,607 17,644 18,683 17,642 47 Time deposits2 76,189 79,160 79,138 74,032 72,783 72,362 71,260 70,672' 70,435' 72,181 48 Other3 33,021 54,191 75,980 83,268 89,517 89,608 109,821 125,588 119,919' 111,641 49 Banks' custodial liabilities5 66,989 81,132 114,868 109,305 107,582 112,143 112,345 116,265 118,435 112,883 50 U.S. Treasury bills and certificates6 12,023 8,561 12,255 13,256 13,980 15,584 15,897 18,035 19,109' 15,597 51 Short-term agency securities7 n.a. n.a. 21,312 20,138 18,841 19,540 19,852 20,785 19,759' 17,091 52 Other negotiable and readily transferable instruments8 45,507 62,289 55,844 55,388 54,202 56,294 55,535 56,306 58,321 58,837 53 Other 9,459 10,282 25,457 20,523 20,559 20,725 21,061 21,139 21,246 21,358 MEMO 54 Negotiable time certificates of deposits in custody for foreigners 30,345 34,217 20,440 24,061 22,587 27,490 28,027 28,215 28,267 27,817 55 Repurchase agreements7 n.a. n.a. 150,806 141,443 154,803 159,627 180,775 192,299 205,171 191,970 1. Reporting banks include all types of depository institutions as well as some brokers and 6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official dealers. Excludes bonds and notes of maturities longer than one year. institutions of foreign countries. 2. Excludes negotiable time certificates deposit, which are included in "Other negotiable 7. Data available beginning January 2001. and readily transferable instruments." 8. Principally bankers acceptances, commercial paper, and negotiable time certificates of 3. Includes borrowing under repurchase agreements. deposit. 4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidi- 9. Principally the International Bank for Reconstruction and Development, the Interaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory American Development Bank, and the Asian Development Bank. Excludes "holdings of agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists dollars" of the International Monetary Fund. principally of amounts owed to the head office or parent foreign bank, and to foreign 10. Foreign central banks, foreign central governments, and the Bank for International branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Settlements. 5. Financial claims on residents of the United States, other than long-term securities, held 11. Excludes central banks, which are included in "Official institutions." by or through reporting banks for foreign customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 International Statistics • February 2003 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued Payable in U.S. dollars Millions of dollars, end of period 2002 IItteemm 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct.P AREA OR COUNTRY 56 Total, all foreigners 1,408,740 1,511,410 1,655,381 1,690,356 1,714,564 1,731,188 1,708,496 l,764,902r l,751,860r 1,845,883 57 Foreign countries 1,393,464 1,498,867 1,644,574 1,675,916 1,702,435 1,719,620 1,697,462 l,754,360r l,740,263r 1,832,730 58 Europe 441,810 446,788 521,331 541,083 539,824 529,742 525,065 547,372' 569,567' 649,032 59 Austria 2,789 2,692 2,922 3,363 3,096 3,563 2,862 3,537 3,081 3,053 60 Belgium12 44,692 33,399 6,557 6,607 6,723 6,066 6,462 6,270 8,389 7,420 61 Denmark 2,196 3,000 3,626 2,801 3,455 3,416 3,507 4,090 3,141 3,033 62 Finland 1,658 1,411 1,446 1,239 1,198 1,197 3,503 1,498 1,259 5,170 63 France 49,790 37,833 49,056 36,396 36,174 35,390 39,809 35,447 37,915 38,524 64 Germany 24,753 35,519 22,375 25,584 26,643 25,188 27,754 27,046 31,197 31,381 65 Greece 3,748 2,011 2,307 2,285 2,700 3,570 2,815 2,677 2,612 3,357 66 Italy 6,775 5,072 6,354 4,948 4,620 4,694 3,914 3,440 3,493 5,043 67 Luxembourg12 n.a. n.a. 16,894 13,967 14,893 15,469 15,237 15,682 16,156 15,486 68 Netherlands 8,143 7,047 12,411 11,030 12,045 10,439 9,568 11,522 11,004 10,690 69 Norway 1,327 2,305 3,727 6,470 7,681 11,164 14,540 10,047 17,747 18,895 70 Portugal 2,228 2,403 4,033 5,051 4,905 4,616 3,496 3,055 3,695 3,220 71 Russia 5,475 19,018 20,800 22,113 24,211 25,060 24,189 24,196 25,252 24,407 72 Spain 10,426 7,787 8,811 10,737 9,764 11,032 10,394 12,423 12,596 12,825 73 Sweden 4,652 6,497 3,375 2,495 5,677 4,176 4,815 5,709 4,137 4,857 74 Switzerland 63,485 74,635 66,403 129,007 114,220 99,588 85,247 101,660 105,283 181,836 75 Turkey 7,842 7,548 7,474 11,671 11,216 9,908 10,701 12,393 12,786 11,226 76 United Kingdom 172,687 167,757 204,396 164,217 172,034 175,785 175,246 183,139' 182,605' 183,514 77 Channel Islands and Isle of Man13 n.a. n.a. 36,059 38,070 38,602 38,735 39,286 38,069 38,846 39,961 78 Yugoslavia14 286 276 309 265 273 267 279 276 280 316 79 Other Europe and other former U.S.S.R.15 28,858 30,578 41,996 42,767 39,694 40,419 41,441 45,196 48,093 44,818 80 Canada 34,214 30,982 27,247 26,228 24,434 24,075 26,361 24,607 24,832 26,407 81 Latin America 117,495 120,041 118,016 111,661 110,009 105,982 105,697 106,416 104,104 106,812 82 Argentina 18,633 19,451 10,704 11,795 11,653 11,356 11,297 11,432 11,179 12,053 83 Brazil 12,865 10,852 14,169 14,076 12,892 12,968 12,537 12,051 11,583 11,550 84 Chile 7,008 5,892 4,939 6,326 6,643 6,121 6,394 5,798 5,494 5,827 85 Colombia 5,669 4,542 4,695 4,226 4,273 4,010 3,872 3,718 4,509 3,847 86 Ecuador 1,956 2,112 2,390 2,342 2,294 2,259 2,324 2,266 2,374 2,155 87 Guatemala 1,626 1,601 1,882 1,782 1,335 1,319 1,323 1,384 1,535 1,500 88 Mexico 30,717 32,166 39,870 34,879 35,250 32,440 33,301 34,916 32,486 34,661 89 Panama 4,415 4,240 3,610 3,336 3,273 3,894 3,143 3,154 3,225 3,573 90 Peru 1,142 1,427 1,359 1,225 1,270 1,417 1,502 1,353 1,369 1,300 91 Uruguay 2,386 3,003 3,164 2,648 2,410 2,373 1,885 2,614 2,613 2,583 92 Venezuela 20,192 24,730 24,974 22,380 22,333 21,738 21,771 21,547 21,355 21,661 93 Other Latin America16 10,886 10,025 6,260 6,646 6,383 6,087 6,348 6,183 6,382 6,102 94 Caribbean 461,200 573,337 665,866 673,108 698,131 704,615 695,375 733,451' 701,327' 720,728 95 Bahamas 135,811 189,298 179,208 164,499 172,604 179,725 160,784 172,092' 165,955 169,251 96 Bermuda 7,874 9,636 10,539 11,096 13,419 15,646 18,372 21,962 21,895 20,466 97 British West Indies17 312,278 367,197 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 98 Cayman Islands17 n.a. n.a. 458,268 478,218 493,272 488,069 493,720 511,177' 495,362' 512,653 99 Cuba 75 90 88 90 93 96 92 99 92 92 100 Jamaica 520 794 1,182 1,047 996 924 931 948 932 856 101 Netherlands Antilles 4,047 5,428 3,264 5,745 3,312 3,757 3,950 10,548 4,391 5,303 102 Trinidad and Tobago 595 894 1,269 1,791 1,634 1,593 1,691 1,803 1,562 1,471 103 Other Caribbean16 n.a. n.a. 12,048 10,622 12,801 14,805 15,835 14,822 11,138 10,636 104 Asia 319,489 305,554 294,496 306,459 312,668 336,488 326,469 322,804' 321,964' 311,296 China 105 Mainland 12,325 16,531 10,498 22,336 22,410 20,779 18,106 18,808 14,621 15,852 106 Taiwan 13,603 17,352 17,633 24,371 21,733 23,480 19,068 20,103 21,726 23,269 107 Hong Kong 27,701 26,462 26,494 24,613 27,275 29,018 30,713 26,971 27,604 26,559 108 India 7,367 4,530 3,708 4,045 4,980 7,061 7,370 7,240 7,488 7,182 109 Indonesia 6,567 8,514 12,383 11,875 12,623 13,871 13,589 13,805 13,098 12,316 110 Israel 7,488 8,053 7,870 9,541 8,965 8,954 9,757 7,952 11,619 9,105 111 Japan 159,075 150,415 155,314 157,689 161,589 179,654 176,445 174,319 170,143 160,323 112 Korea (South) 12,988 7,955 9,019 5,972 6,592 6,826 7,038 6,845 6,562 6,287 113 Philippines 3,268 2,316 1,772 1,671 1,544 1,754 2,080 1,572 2,064 1,589 114 Thailand 6,050 3,117 4,743 4,940 5,060 5,966 4,591 5,113 5,044 7,021 115 Middle Eastern oil-exporting countries18 21,314 23,763 20,035 15,453 18,128 16,582 15,467 16,668 17,226' 15,585 116 Other 41,743 36,546 25,027 23,953 21,769 22,543 22,245 23,408' 24,769' 26,208 117 Africa 9,468 10,824 11,365 11,645 11,664 11,830 12,103 12,128 11,145 11,935 118 Egypt 2,022 2,621 2,778 3,606 3,605 3,672 3,411 3,179 2,538 2,545 119 Morocco 179 139 274 234 230 307 265 307 329 335 120 South Africa 1,495 1,010 839 636 683 685 724 777 111 692 121 Congo (formerly Zaire) 14 4 4 6 7 n.a. 1 n.a. 86 n.a. 122 Oil-exporting countries19 2,914 4,052 4,377 3,828 3,561 3,522 3,757 3,940 3,670 4,635 123 Other 2,844 2,998 3,093 3,335 3,578 3,644 3,945 3,925 3,745 3,728 124 Other countries 9,788 11,341 6,253 5,732 5,705 6,888 6,392 7,582 7,324 6,520 175 Australia 8,377 10,070 5,599 4,801 4,706 6,031 5,422 6,523 5,931 5,437 126 New Zealand20 n.a. n.a. 242 533 510 494 613 644 869 599 127 All other 1,411 1,271 412 398 489 363 357 415 524 484 128 Nonmonetary international and regional organizations 15,276 12,543 10,807 14,441 12,129 11,568 11,495 10,542 11,597 13,153 129 International21 12,876 11,270 9,308 12,262 10,851 10,490 10,097 9,422 9,367 11,725 130 Latin American regional22 1,150 740 480 954 644 342 386 402 394 561 131 Other regional23 1,250 533 935 1,158 550 645 894 643 1,766 789 12. Before January 2001, data for Belgium-Luxembourg were combined. 18. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 13. Before January 2001, these data were included in data reported for the United Emirates (Trucial States). Kingdom. 19. Comprises Algeria, Gabon, Libya, and Nigeria. 14. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 20. Before January 2001, these data were included in "All other." 15. Includes the Bank for International Settlements and the European Central Bank. Since 21. Principally the International Bank for Reconstruction and Development. Excludes December 1992, has included all parts of the former U.S.S.R. (except Russia), and Bosnia, "holdings of dollars" of the International Monetary Fund. Croatia, and Slovenia. 22. Principally the Inter-American Development Bank. 16. Before January 2001, data for "Other Latin America" and "Other Caribbean" were 23. Asian, African, Middle Eastern, and European regional organizations, except the Bank combined in "Other Latin America and Caribbean." for International Settlements, which is included in "Other Europe." 17. Beginning January 2001, data for the Cayman Islands replaced data for the British West Indies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A49 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 AArreeaa oorr ccoouunnttrryy 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct.? 1 Total, all foreigners 793,139 904,642 1,055,169 1,103,935 1,089,474 1,110,469 1,048,408 1,086,297 l,064,640r 1,135,884 2 Foreign countries 788,576 899,956 1,050,223 1,099,790 1,084,700 1,106,223 1,043,772 1,082,050 l,061,995r 1,133,184 3 Europe 311,686 378,115 461,276 527,756 511,409 504,174 464,552 483,076 470,315r 543,054 4 Austria 2,643 2,926 5,006 3,431 3,558 3,963 4,046 4,297 4,336 3,861 5 Belgium2 10,193 5,399 6,366 4,387 4,019 5,197 7,126 5,140 4,689 5,590 6 Denmark 1,669 3,272 1,105 1,122 1,062 1,248 856 1,546 1,483 1,534 7 Finland 2,020 7,382 10,350 13,092 14,279 16,517 13,718 16,230 15,812 14,821 8 France 29,142 40,035 60,670 58,004 58,207 58,766 59,104 51,798 51,083' 47,065 9 Germany 29,205 36,834 29,902 34,281 29,033 28,891 26,156 26,072 23,344r 21,101 10 Greece 806 646 330 364 354 330 393 438 408 388 11 Italy 8,496 7,629 4,205 5,036 4,050 4,378 5,568 4,442 4,942 3,984 17 Luxembourg2 n.a. n.a. 1,267 3,453 3,552 3,547 3,526 3,067 2,847 2,818 13 Netherlands 11,810 17,043 15,927 16,892 16,294 16,440 13,679 18,232 17,691r 13,284 14 Norway 1,000 5,012 6,249 6,572 8,301 8,526 9,433 10,578 11,036 11,848 15 Portugal 1,571 1,382 1,603 2,083 1,594 1,780 1,995 1,823 2,006 1,922 16 Russia 713 517 594 951 826 1,145 867 842 801 858 17 Spain 3,796 2,603 3,260 3,484 3,130 3,081 3,336 3,589 4,675 3,183 18 Sweden 3,264 9,226 12,544 11,589 13,348 13,814 14,932 14,618 13,970' 15,366 19 Switzerland 79,158 82,085 87,333 150,258 137,532 119,244 87,969 106,281 103,920' 184,037 70 Turkey 2,617 3,059 2,124 3,012 2,953 2,662 2,410 2,515 2,474 2,622 21 United Kingdom 115,971 144,938 201,201 198,660 198,194 203,627 198,151 202,178 194,757' 195,816 22 Channel Islands and Isle of Man3 n.a. n.a. 4,478 3,755 3,835 4,246 4,962 5,076 5,926 7,281 23 Yugoslavia4 50 50 n.a. 2 1 n.a. n.a. n.a. n.a. n.a. 24 Other Europe and other former U.S.S.R.5 7,562 8,077 6,762 7,328 7,287 6,772 6,325 4,314 4,115' 5,675 25 Canada 37,206 39,837 54,421 57,078 57,451 60,593 63,237 60,310 62,836 57,519 76 Latin America 74,040 76,561 69,762 69,524 65,502 66,851 63,194 62,214 60,377' 59,295 27 Argentina 10,894 11,519 10,763 9,722 9,235 11,019 8,202 8,090 7,663 7,608 78 Brazil 16,987 20,567 19,434 20,138 18,797 19,019 18,512 17,945 17,266 16,863 79 Chile 6,607 5,815 5,317 5,226 4,950 4,874 4,949 4,960 5,118 5,142 30 Colombia 4,524 4,370 3,602 3,643 3,516 3,266 3,216 3,158 3,078 2,834 31 Ecuador 760 635 495 495 519 500 462 479 467 451 32 Guatemala 1,135 1,244 1,495 1,329 905 882 871 861 925 907 33 Mexico 17,899 17,415 16,522 17,356 16,448 16,266 16,349 16,015 15,805 15,367 34 Panama 3,387 2,933 3,061 2,764 2,751 2,599 2,466 2,433 1,959 2,021 35 Peru 2,529 2,807 2,185 2,019 1,923 1,833 1,748 1,649 1,599 1,504 36 Uruguay 801 673 447 477 357 324 314 527 345 319 37 Venezuela 3,494 3,518 3,077 3,472 3,353 3,337 3,306 3,291 3,301 3,389 38 Other Latin America6 5,023 5,065 3,364 2,883 2,748 2,932 2,799 2,806 2,851' 2,890 39 Caribbean 281,128 319,403 370,945 345,459 360,258 374,459 345,580 367,915 347,755 356,581 40 Bahamas 99,066 114,090 101,034 94,279 107,269 108,369 96,886 95,704 91,146' 96,509 41 Bermuda 8,007 9,260 7,900 9,722 8,380 11,088 11,723 11,847 11,304 12,196 42 British West Indies7 167,189 189,289 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 43 Cayman Islands7 n.a. n.a. 250,376 231,683 234,758 243,369 225,681 248,107 234,435' 235,693 44 Cuba 0 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 45 Jamaica 295 355 418 413 408 361 350 353 463 429 46 Netherlands Antilles 5,982 5,801 6,729 5,390 5,578 6,859 6,387 7,334 6,194 7,427 47 Trinidad and Tobago 589 608 931 935 834 862 881 877 916 920 48 Other Caribbean6 n.a. n.a. 3,557 3,037 3,031 3,551 3,672 3,693 3,297 3,407 49 75,143 77,829 85,882 91,687 83,143 92,344 99,551 100,484 112,430' 109,359 China 50 Mainland 2,110 1,606 2,073 6,044 4,857 6,047 7,832 5,904 7,256 8,515 51 Taiwan 1,390 2,247 4,407 3,349 3,261 6,520 6,954 7,443 8,656 8,599 52 Hong Kong 5,903 6,669 9,995 6,457 5,350 5,596 6,614 6,531 8,481 5,778 53 India 1,738 2,178 1,348 1,276 1,414 1,462 1,083 1,293 1,258 999 54 Indonesia 1,776 1,914 1,752 1,677 1,564 1,571 1,553 1,457 1,426 1,390 55 Israel 1,875 2,729 4,396 4,413 3,747 3,411 4,647 4,952 5,067 4,710 56 Japan 28,641 34,974 34,125 37,787 32,937 36,394 35,947 37,559 45,058' 42,252 57 Korea (South) 9,426 7,776 10,622 15,020 13,326 14,856 18,065 18,961 17,394 19,439 58 Philippines 1,410 1,784 2,587 1,718 1,332 1,995 1,857 1,593 2,134 1,843 59 Thailand 1,515 1,381 2,499 752 716 730 1,160 1,175 1,841 1,205 60 Middle Eastern oil-exporting countries8 14,267 9,346 7,882 9,143 9,555 9,061 8,960 8,975 8,619 9,253 61 Other 5,092 5,225 4,196 4,051 5,084 4,701 4,879 4,641 5,240' 5,376 67 Africa 2,268 2,094 2,095 1,967 1,877 2,069 1,914 1,887 1,891 1,790 63 Egypt 258 201 416 333 337 418 405 324 332 326 64 Morocco 352 204 106 85 85 79 77 72 58 50 65 South Africa 622 309 710 672 559 649 545 601 576 554 66 Congo (formerly Zaire) 24 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 67 Oil-exporting countries9 276 471 167 234 247 232 227 247 303 261 68 Other 736 909 696 643 649 691 660 643 622 599 69 Other countries 7,105 6,117 5,842 6,319 5,060 5,733 5,744 6,164 6,391' 5,586 70 Australia 6,824 5,868 5,455 5,692 4,633 5,272 5,345 5,616 5,589' 5,088 71 New Zealand10 n.a. n.a. 349 586 406 455 392 541 789' 485 72 All other 281 249 38 41 21 6 7 7 13 13 73 Nonmonetary international and regional organizations" .. 4,563 4,686 4,946 4,147 4,774 4,246 4,636 4,247 2,645' 2,700 1. Reporting banks include all types of depository institutions as well as some brokers and 6. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as dealers. combined "Other Latin America and Caribbean." 2. Before January 2001, combined data reported for Belgium-Luxembourg. 7. Beginning 2001, Cayman Islands replaced British West Indies in the data series. 3. Before January 2001, data included in United Kingdom. 8. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 4. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. Emirates (Trucial States). 5. Includes the Bank for International Settlements and European Central Bank. Since 9. Comprises Algeria, Gabon, Libya, and Nigeria. December 1992, has included all parts of the former U.S.S.R. (except Russia) and Bosnia, 10. Before January 2001, included in "All other." Croatia, and Slovenia. 11. Excludes the Bank for International Settlements, which is included in "Other Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • February 2003 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 TTyyppee ooff ccllaaiimm Apr. May June July Aug. Sept.' Oct.f 1 Total 944,937 1,095,869 1,254,963r 1,321,535' 1,252,076 2 Banks' claims 793,139 904,642 1,055,169 1,103,935 1,089,474 1,110,469 1,048,408 1,086,297 1,064,640 1,135,884 3 Foreign public borrowers 35,090 37,907 49,486 52,772 49,524 51,042 61,151 61,541 61,297 63,404 4 Own foreign offices2 529,682 630,137 749,124 787,312 782,182 793,226 720,252 758,173 734,051 807,004 5 Unaffiliated foreign banks 97,186 95,243 100,367 95,081 89,279 92,444 91,946 86,225 94,264 94,474 6 Deposits 34,538 23,886 26,189 22,778 21,598 24,012 24,449 19,051 24,213 26,606 7 Other 62,648 71,357 74,178 72,303 67,681 68,432 67,497 67,174 70,051 67,868 8 All other foreigners 131,181 141,355 156,192 168,770 168,489 173,757 175,059 180,358 175,028 171,002 9 Claims of banks' domestic customers3 151,798 191,227 199,794r 211,066' 187,436 10 Deposits 88,006 100,352 93,565r 94,129r 86,455 11 Negotiable and readily transferable instruments4 51,161 78,147 90,412r 104,532' 88,648 12 Outstanding collections and other claims 12,631 12,728 15,817 12,405r 12,333 MEMO 13 Customer liability on acceptances 4,553 4,257 2,588 2,356' 2,353 14 Banks' loans under resale agreements5 n.a. n.a. 137,655 137,i54 134,901 152,383 162,975 164,355 159,880 159,662 15 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States6 31,125 53,153 60,711 57,884 48,488 62,161 57,552 52,982 52,470 55,284 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are principally of amounts due from the head office or parent foreign bank, and from foreign for quarter ending with month indicated. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Reporting banks include all types of depository institution as well as some brokers and 3. Assets held by reporting banks in the accounts of their domestic customers. dealers. 4. Principally negotiable time certificates of deposit and bankers acceptances, and commer- 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidi- cial paper. aries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 5. Data available beginning January 2001. agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists 6. Includes demand and time deposits and negotiable and nonnegotiable certificates of deposit denominated in U.S. dollars issued by banks abroad. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in US. dollars Millions of dollars, end of period 2001 2002 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999988 11999999 22000000 Dec. Mar.' June' Sept.P 1 Total 250,418 267,082 274,009 305,326r 307,305 316,596 330,137 By borrower 2 Maturity of one year or less 186,526 187,894 186,103 200,240' 187,488 202,952 214,599 3 Foreign public borrowers 13,671 22,811 21,399 27,501' 26,736 26,781 32,106 4 All other foreigners 172,855 165,083 164,704 172,739' 160,752 176,171 182,493 5 Maturity of more than one year 63,892 79,188 87,906 105,086' 119,817 113,644 115,538 6 Foreign public borrowers 9,839 12,013 15,838 21,324 28,167 23,939 28,751 7 All other foreigners 54,053 67,175 72,068 83,762' 91,650 89,705 86,787 By area Maturity of one year or less 8 Europe 68,679 80,842 142,464 83,233' 79,182 82,220 86,522 9 Canada 10,968 7,859 8,323 10,072 7,733 8,069 6,357 10 Latin America and Caribbean 81,766 69,498 151,840 70,648 68,824 78,762 80,156 11 Asia 18,007 21,802 43,371 29,693 24,553 28,375 36,608 V Africa 1,835 1,122 2,263 1,104 1,124 918 896 13 All other3 5,271 6,771 11,717 5,490 6,072 4,611 4,060 Maturity of more than one year 14 Europe 14,923 22,951 57,770 34,230' 43,284 39,208 38,571 15 Canada 3,140 3,192 3,174 3,633 3,623 3,480 4,146 16 Latin America and Caribbean 33,442 39,051 82,684 47,382 48,744 51,292 47,961 17 Asia 10,018 11,257 19,536 15,190 19,553 15,025 20,720 18 Africa 1,232 1,065 1,567 769 720 907 812 19 All other3 1,137 1,672 5,954 3,882 3,893 3,732 3,328 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A51 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 2000 2001 2002 AArreeaa oorr ccoouunnttrryy 11999988 11999999 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept.? 1 Total 1,051.6 945.5 954.4 1,027.3 1,141.1 1,137.0 1,282.1 913.0 799.5r 867.0r 851.2 2 G-10 countries and Switzerland 217.7 243.4 280.3 300.7 334.6 336.3 290.7r 404.4' 324.2r 346.7' 316.3 3 Belgium and Luxembourg 10.7 14.3 13.0 14.2 15.2 13.0 14.3 19.1 16.4 17.0 18.1 4 France 18.4 29.0 29.0 29.6 30.0 35.8 34.4 39.1 34.2r 43.6' 34.5 5 Germany 30.9 38.7 37.6 45.1 45.0 51.4 40.9 42.9 49.2 52.0 48.9 6 Italy 11.5 18.1 18.6 21.3 20.3 23.6 22.6 20.9 19.0 20.3 15.9 7 Netherlands 7.8 12.3 17.5 18.4 22.1 18.6 20.7 19.3 23.8r 20.9 22.7 8 Sweden 2.3 3.0 4.3 3.6 4.7 4.7 5.1 5.3 5.5 6.2 5.9 9 Switzerland 8.5 10.3 10.9 13.2 13.7 13.3 12.8 12.4 13.5 14.0 12.7 10 United Kingdom 85.4 79.3 112.8 115.6 140.2 126.2 92.7r 193.lr 110.5' 117.8' 101.9 11 Canada 16.8 16.3 18.5 16.7 15.4 21.3 20.3 19.1 16.9 18.3 18.7 12 Japan 25.4 22.1 18.1 23.0 28.0 28.3 26.8 33.1 35.3 36.7 36.9 13 Other industrialized countries 69.0 68.4 73.7 74.5 75.2 70.0 70.6 70.5 69.9 78.4 80.7 14 Austria 1.4 3.5 3.5 4.1 3.8 3.6 4.4 4.8 5.1 5.7 6.5 15 Denmark 2.2 2.6 1.8 1.9 3.1 2.7 2.7 2.6 3.5 2.9 2.8 16 Finland 1.4 .9 2.8 1.5 1.4 1.2 1.3 1.1 2.1 1.5 1.6 17 Greece 5.9 6.0 6.4 8.3 4.1 3.6 3.6 3.2 3.3 3.7 4.1 18 Norway 3.2 3.3 8.5 8.3 10.2 7.9 6.2 8.1 9.0 10.6 12.7 19 Portugal 1.4 1.0 1.5 2.0 1.9 1.4 1.4 1.6 1.8 1.8 1.4 20 Spain 13.7 12.1 10.5 10.3 12.4 12.4 13.7 12.1 12.1 13.3 15.2 21 Turkey 4.8 4.8 5.6 5.9 5.0 4.5 4.1 3.9 5.3 4.3 4.0 22 Other Western Europe 10.4 6.8 8.3 6.5 7.1 6.9 7.2 8.3 8.4 9.0 7.6 23 South Africa 4.4 3.8 4.2 3.6 4.1 3.8 4.4 4.1 3.3 3.5 2.5 24 Australia 20.3 23.5 20.5 22.1 21.9 22.1 21.6 20.6 15.9 22.2 22.3 25 OPEC2 27.1 31.4 31.4 28.9 27.9 27.1 27.4 27.3 27.5 26.7 26.4 26 Ecuador 1.3 .8 .6 .6 .6 .6 .6 .6 .6 .6 .5 27 Venezuela 3.2 2.8 2.9 2.5 2.7 2.6 2.6 2.4 2.4 2.2 2.4 28 Indonesia 4.7 4.2 4.4 4.6 4.4 4.2 4.0 3.7 3.6 3.3 3.0 29 Middle East countries 17.0 23.1 22.4 20.3 19.7 19.3 19.9 20.3 20.6 20.2 20.1 30 African countries 1.0 .5 1.2 .8 .5 .4 .4 .3 .3 .4 .4 31 Non-OPEC developing countries 143.4 149.4 149.5 145.5 150.1 157.6 201.6 203.3 195.9 ws.o' 188.3 Latin America 32 Argentina 23.1 23.2 21.4 21.4 20.9 19.8 19.2 19.2 12.8 12.3 9.0 33 Brazil 24.7 27.7 28.5 28.8 29.4 30.9 30.9 28.0 26.6 24.8 21.9 34 Chile 8.3 7.4 7.3 7.6 7.3 7.0 6.4 7.0 7.1 7.1 6.8 35 Colombia 3.2 2.5 2.4 2.4 2.4 2.4 2.5 2.5 2.4 2.4 2.2 36 Mexico 18.9 18.7 17.5 15.7 16.7 16.3 60.0 68.2 67.1 63.5 57.9 37 Peru 2.2 1.7 2.1 2.0 2.0 2.0 1.9 1.8 1.5 1.5 1.4 38 Other 5.4 5.9 6.2 6.3 8.6 8.3 8.1 8.9 7.9 7.4 7.2 Asia China 39 Mainland 3.0 3.6 3.4 2.9 3.2 6.7 5.9 5.0 7.0 8.6 9.3 40 Taiwan 13.3 12.0 12.8 10.8 11.2 10.7 10.8 12.2 12.6 IS.O1 17.3 41 India 5.5 7.7 5.8 9.1 6.5 11.8 14.1 6.9 6.3 5.9 5.6 42 Israel 1.1 1.8 1.1 2.7 2.2 2.0 3.2 3.7 2.4 2.4 3.9 43 Korea (South) 13.7 15.2 21.4 15.5 19.9 19.3 19.3 18.5 22.4 24.4 25.4 44 Malaysia 5.6 6.1 6.9 7.1 6.5 6.7 6.1 6.7 6.4 6.3 6.6 45 Philippines 5.1 6.2 4.7 5.1 5.2 5.4 5.2 5.6 5.4 5.3 5.3 46 Thailand 4.7 4.1 3.9 4.0 4.2 4.2 3.9 5.1 4.0 3.5 4.5 47 Other Asia 2.9 2.9 1.7 1.9 1.7 1.8 1.6 1.9 1.9 2.0 2.0 Africa 48 Egypt 1.3 1.4 1.1 1.1 1.2 1.2 1.4 1.2 1.3 1.5 1.3 49 Morocco .5 .4 .4 .3 .3 .3 .3 .1 .1 .1 .1 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.0 1.0 .8 .7 .7 .7 .8 .7 .7 .8 .7 52 Eastern Europe 5.5 5.2 9.0 10.1 9.5 9.5 10.2 10.1 10.6 11.9' 12.8 53 Russia4 2.2 1.6 1.4 1.0 1.5 1.5 1.6 1.6 2.8 2.8 2.6 54 Other 3.3 3.6 7.6 9.1 8.0 8.0 8.5 8.5 7.9 9.0' 10.2 55 Offshore banking centers 93.9 59.9 59.4 76.3 71.4 58.1 73.1 72.0 56.6 90.6 93.3 56 Bahamas 35.4 13.7 9.3 13.5 7.0 .0 1.1 7.5 7.5 10.9 5.5 57 Bermuda 4.6 8.0 6.3 9.0 7.9 5.7 7.6 7.6 8.1 12.7 11.8 58 Cayman Islands and other British West Indies 12.8 1.3 5.9 14.6 13.6 11.9 21.8 16.4 5.0 27.8 40.8 59 Netherlands Antilles 2.6 1.7 1.9 1.9 2.9 1.7 5.8 2.8 3.3 2.8 2.2 60 Panama5 3.9 3.9 2.5 3.2 3.8 3.4 3.5 3.2 3.3 3.2 3.0 61 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .2 .1 62 Hong Kong, China 23.3 21.0 20.6 18.7 21.5 22.3 17.9 18.9 15.7 16.5 18.7 63 Singapore 11.1 10.1 12.6 15.2 14.6 12.9 15.2 15.5 13.5 16.6 11.2 64 Other" .2 .1 .1 .2 .1 .1 .0 .1 .0 .0 .0 65 Miscellaneous and unallocated7 495.1 387.9 351.1 391.2 472.4 478.6 608.7r 125.4r 114.8' 117.8' 133.4 NOTE. Publication of table 3.21, "Claims on Foreign Countries Held by U.S. and Foreign are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign Offices of U.S. Banks," will be discontinued in the Federal Reserve Bulletin after the March branch of the same banking institution. 2003 issue. Table 3.21 was originally published as a more timely report of a geographic These data are on a gross claims basis and do not necessarily reflect the ultimate country breakdown of assets of foreign branches than the report released by the Federal Financial risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks Institutions Examination Council (FFIEC), FFIEC009 Country Exposure Report, which once are available in the quarterly Country Exposure Lending Survey published by the Federal lagged by five months. Currently, the Country Exposure Report from FFIEC is being Financial Institutions Examination Council. published with a quarter lag and has more complete data on country risk exposure of U.S. 2. Organization of Petroleum Exporting Countries, shown individually; other members of banks. The data are available on FFIEC's web site: http://www.ffiec.gov/el6.htm, or can be OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United obtained from Publications Services, Mail Stop 127, Board of Governors of the Federal Arab Emirates), and Bahrain and Oman (not formally members of OPEC). Reserve System, Washington, DC 20551, or call 202-452-3244 or 45. 3. Excludes Liberia. Beginning March 1994 includes Namibia. 1. The banking offices covered by these data include U.S. offices and foreign branches of 4. As of December 1992, excludes other republics of the former Soviet Union. U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered 5. Includes Canal Zone. include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include 6. Foreign branch claims only. large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository 7. Includes New Zealand, Liberia, and international and regional organizations. institutions as well as some types of brokers and dealers. To eliminate duplication, the data Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics • February 2003 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 2001 2002 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999988 11999999 22000000 Mar. June Sept. Dec. Mar. June 1 Total 46,570 53,044 73,904 73,655 68,028 53,526 66,718 74,280r 70,179 2 Payable in dollars 36,668 37,605 48,931 46,526 41,734 35,347 42,957 47,050' 48,103 3 Payable in foreign currencies 9,902 15,415 24,973 27,129 26,294 18,179 23,761 27,230 22,076 By type 4 Financial liabilities 19,255 27,980 47,419 47,808 41,908 27,502 41,034 45,833' 42,365 5 Payable in dollars 10,371 13,883 25,246 23,201 17,655 11,415 18,763 20,367r 21,892 6 Payable in foreign currencies 8,884 14,097 22,173 24,607 24,253 16,087 22,271 25,466 20,473 7 Commercial liabilities 27,315 25,064 26,485 25,847 26,120 26,024 25,684 28,447 27,814 8 Trade payables 10,978 12,857 14,293 12,481 13,127 11,740 11,820 14,872 13,959 y Advance receipts and other liabilities 16,337 12,207 12,192 13,366 12,993 14,284 13,864 13,575 13,855 10 Payable in dollars 26,297 23,722 23,685 23,325 24,079 23,932 24,194 26,683 26,211 a Payable in foreign currencies 1,018 1,318 2,800 2,522 2,041 2,092 1,490 1,764 1,603 By area or country Financial liabilities 12 Europe 12,589 23,241 34,172 37,422 32,785 22,083 31,806 38,942' 34,682 13 Belgium and Luxembourg 79 31 147 112 98 76 154 119 120 14 France 1,097 1,659 1,480 1,553 1,222 1,538 2,841 3,531 4,071 15 Germany 2,063 1,974 2,168 2,624 2,463 1,994 2,344 2,982' 2,622 16 Netherlands 1,406 1,996 2,016 2,169 1,763 1,998 1,954 1,951 1,939 17 Switzerland 155 147 104 103 93 92 94 84 61 18 United Kingdom 5,980 16,521 26,362 28,812 25,363 14,819 22,852 28,180 23,859 19 Canada 693 284 411 718 628 436 955 942 946 20 Latin America and Caribbean 1,495 892 4,125 3,632 2,100 414 2,858 1,547 1,832 21 Bahamas 7 1 6 18 40 5 157 5 5 22 Bermuda 101 5 1,739 1,837 461 47 960 836 626 23 Brazil 152 126 148 26 21 22 35 35 38 24 British West Indies 957 492 406 1,657 1,508 243 1,627 612 1,000 25 Mexico 59 25 26 31 20 24 36 27 25 26 Venezuela 2 0 2 1 1 3 2 1 5 27 Asia 3,785 3,437 7,965 5,324 5,639 3,869 5,042 4,010 4,491 28 Japan 3,612 3,142 6,216 4,757 3,297 3,442 3,269 3,299 2,387 29 Middle Eastern oil-exporting countries' 0 4 11 15 8 9 10 15 14 30 Africa 28 28 52 38 61 59 53 122 120 31 Oil-exporting countries2 0 0 0 0 0 5 5 91 91 32 All other3 665 98 694 674 695 672 320 270 294 Commercial liabilities 33 Europe 10,030 9,262 9,629 8,792 8,723 8,855 9,230 8,372 8,468 34 Belgium and Luxembourg 278 140 293 251 297 160 99 105 94 35 France 920 672 979 689 665 892 735 701 827 36 Germany 1,392 1,131 1,047 982 1,017 966 908 584 570 37 Netherlands 429 507 300 349 343 343 1,163 463 765 38 Switzerland 499 626 502 623 697 683 790 637 749 39 United Kingdom 3,697 3,071 2,847 2,542 2,706 2,296 2,280 2,747 2,551 40 Canada 1,390 1,775 1,933 1,625 1,957 1,569 1,633 1,798 2,027 41 Latin America and Caribbean 1,618 2,310 2,381 2,166 2,293 2,879 2,729 3,454 2,746 42 Bahamas 14 22 31 5 31 44 52 23 12 43 Bermuda 198 152 281 280 367 570 591 433 422 44 Brazil 152 145 114 239 279 312 290 277 320 45 British West Indies 10 48 76 64 21 28 45 67 46 46 Mexico 347 887 841 792 762 884 901 1,457 958 47 Venezuela 202 305 284 243 218 242 166 281 204 48 Asia 12,342 9,886 10,983 11,542 11,384 11,114 10,532 12,969 12,693 49 Japan 3,827 2,609 2,757 2,431 2,377 2,421 2,592 4,281 4,143 50 Middle Eastern oil-exporting countries' 2,852 2,551 2,832 3,359 3,087 3,053 2,642 3,142 3,259 51 Africa 794 950 948 1,072 1,115 938 836 976 916 52 Oil-exporting countries2 393 499 483 566 539 471 436 454 349 53 Other3 1,141 881 614 650 648 669 724 878 964 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A53 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 2001 2002 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999988 11999999 22000000 Mar. June Sept. Dec. Mar. June 1 Total 77,462 76,669 90,157 107,705 97,470 94,076 113,155 115,743r 116,137r 2 Payable in dollars 72,171 69,170 79,558 94,932 87,690 83,292 103,937 106,17 lr 107,095' 3 Payable in foreign currencies 5,291 7,472 10,599 12,773 9,780 10,784 9,218 9,572 9,042 By type 4 Financial claims 46,260 40,231 53,031 74,255 61,891 60,015 81,287 85,381' 87,324' 5 Deposits 30,199 18,566 23,374 25,419 25,381 22,391 29,801 41,813' 42,136' 6 Payable in dollars 28,549 16,373 21,015 23,244 23,174 19,888 27,850 40,002' 40,323' 7 Payable in foreign currencies 1,650 2,193 2,359 2,175 2,207 2,503 1,951 1,811 1,813 8 Other financial claims 16,061 21,665 29,657 48,836 36,510 37,624 51,486 43,568 45,188' 9 Payable in dollars 14,049 18,593 25,142 41,417 32,038 32,076 46,621 39,553 41,875' 10 Payable in foreign currencies 2,012 3,072 4,515 7,419 4,472 5,548 4,865 4,015 3,313 11 Commercial claims 31,202 36,438 37,126 33,450 35,579 34,061 31,868 30,362 28,813' 12 Trade receivables 27,202 32,629 33,104 28,958 30,631 29,328 27,586 25,597 24,252' 13 Advance payments and other claims 4,000 3,809 4,022 4,492 4,948 4,733 4,282 4,765 4,561' 14 Payable in dollars 29,573 34,204 33,401 30,271 32,478 31,328 29,466 26,616 24,897' 15 Payable in foreign currencies 1,629 2,207 3,725 3,179 3,101 2,733 2,402 3,746 3,916 By area or country Financial claims 16 Europe 12,294 13,023 23,136 31,855 23,975 23,069 26,118 35,933' 36,863' 17 Belgium and Luxembourg 661 529 296 430 262 372 625 751 797 18 France 864 967 1,206 3,142 1,376 1,682 1,450 3,489' 3,921' 19 Germany 304 504 848 1,401 1,163 1,112 1,068 4,114' 3,972' 70 Netherlands 875 1,229 1,396 2,313 1,072 954 2,138 3,253' 3,995' 71 Switzerland 414 643 699 613 653 665 589 308 1,010' 22 United Kingdom 7,766 7,561 15,900 20,938 15,913 15,670 16,510 17,910' 16,037' 23 Canada 2,503 2,553 4,576 4,847 4,787 4,254 6,193 5,471' 5,537' 24 Latin America and Caribbean 27,714 18,206 19,317 28,791 24,403 26,099 41,201 35,001 37,511 75 Bahamas 403 1,593 1,353 561 818 649 976 1,197 1,332 76 Bermuda 39 11 19 1,729 426 80 918 611 704 77 Brazil 835 1,476 1,827 1,648 1,877 2,065 2,127 1,892 2,036 78 British West Indies 24,388 12,099 12,596 21,227 17,505 19,234 32,965 27,350 29,591 29 Mexico 1,245 1,798 2,448 2,461 2,633 2,910 3,075 2,777 2,823 30 Venezuela 55 48 87 38 66 80 83 79 60 31 Asia 3,027 5,457 4,697 7,215 6,829 5,274 6,430 6,489 5,826 32 Japan 1,194 3,262 1,631 3,867 1,698 1,761 1,604 2,009 1,093 33 Middle Eastern oil-exporting countries1 9 23 80 86 76 100 135 79 78 34 Africa 159 286 411 430 476 456 414 390 431 35 Oil-exporting countries2 16 15 57 42 35 83 49 51 64 36 All other3 563 706 894 1,117 1,421 891 931 2,097' 1,156' Commercial claims 37 Europe 13,246 16,389 15,938 13,775 14,469 14,381 14,036 12,708 11,861' 38 Belgium and Luxembourg 238 316 452 395 403 354 268 272 207' 39 France 2,171 2,236 3,095 3,479 3,190 3,062 2,922 2,883 2,828' 40 Germany 1,822 1,960 1,982 1,586 1,993 1,977 1,662 1,198 1,163 41 Netherlands 467 1,429 1,729 757 863 844 529 415 379' 47 Switzerland 483 610 763 634 473 514 611 436 472 43 United Kingdom 4,769 5,827 4,502 3,562 3,724 3,571 3,839 3,579 3,387' 44 Canada 2,617 2,757 3,502 3,392 3,470 3,116 2,855 2,760 2,752' 45 Latin America and Caribbean 6,296 5,959 5,851 5,144 6,033 5,590 4,874 4,891 4,520' 46 Bahamas 24 20 37 20 39 35 42 42 28 47 Bermuda 536 390 376 407 650 526 369 422 214' 48 Brazil 1,024 905 957 975 1,363 1,183 958 837 829r 49 British West Indies 104 181 137 130 135 124 95 73 26 50 Mexico 1,545 1,678 1,507 1,350 1,375 1,442 1,401 1,225 1,283' 51 Venezuela 401 439 328 292 321 301 288 312 316' 57 Asia 7,192 9,165 9,630 8,985 9,499 8,704 7,855 7,513 7,309' 53 Japan 1,681 2,074 2,796 2,560 3,148 2,438 2,007 1,975 2,064' 54 Middle Eastern oil-exporting countries1 1,135 1,625 1,024 966 1,040 919 851 657 889' 55 Africa 711 631 672 773 601 838 645 630 604' 56 Oil-exporting countries2 165 171 180 165 102 170 88 109 93' 57 Other3 1,140 1,537 1,572 1,381 1,507 1,432 1,603 1,860 1,767' 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • February 2003 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2002 2002 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 22000000 22000011 J O an ct . . - Apr. May June July Aug. Sept. Oct.P U.S. corporate securities STOCKS 1 Foreign purchases 3,605,196 3,051,332 2,676,788 272,125 274,543 248,562 318,210 257,264 206,699 297,173 2 Foreign sales 3,430,306 2,934,942 2,637,768 264,298 274,889 244,549 308,555 252,651 213,168 295,080 3 Net purchases, or sales (-) 174,890 116,390 39,020 7,827 -346 4,013 9,655 4,613 -6,469 2,093 4 Foreign countries 174,903 116,187 39,097 7,834 -324 3,997 9,582 4,602 -6,454 2,087 5 Europe 164,656 88,099 23,436 2,591 -2,548 -653 3,205 3,830 -5,156 2,185 6 France 5,727 5,914 1,720 1,202 -1,270 -1,249 38 942 -936 982 7 Germany 31,752 8,415 -705 56 -131 -595 -328 -1,175 276 8 Netherlands 4,915 10,919 3,208 -663 41 36 1,440 900 -4 760 y Switzerland 11,960 3,456 26 814 89 -710 -341 -306 -949 -176 10 United Kingdom 58,736 38,493 12,175 -324 -1,829 1,117 1,829 2,801 -1,227 1,403 n Channel Islands and Isle of Man1 n.a. -698 -265 -63 -3 -2 73 -47 -20 94 12 Canada 5,956 10,984 5,149 1,262 546 373 1,939 1,336 -774 -1,179 13 Latin America and Caribbean -17,812 -5,154 -15,971 1,989 -703 -673 -1,318 -3,850 -2,902 -2,874 14 Middle East2 9,189 1,789 -1,134 -273 -30 198 43 -58 46 -90 15 Other Asia 12,494 20,726 24,815 2,143 2,253 3,986 4,755 3,231 2,012 3,985 16 Japan 2,070 6,788 14,680 1,244 3,116 3,193 3,660 2,249 238 -7 17 Africa 415 -366 -39 -41 9 -1 3 -34 36 -22 18 Other countries 5 109 2,841 163 149 767 955 147 284 82 19 Nonmonetary international and regional organizations -11 203 -76 -7 -22 16 73 11 -15 6 BONDS3 20 Foreign purchases 1,208,386 1,942,690 2,080,275 217,286 219,553 204,684 221,223 221,413 208,641' 217,382 21 Foreign sales 871,416 1,556,745 1,775,990 175,072 174,562 171,729 205,574 189,475 183,816' 184,827 22 Net purchases, or sales (-) 336,970 385,945 304,285 42,214 44,991 32,955 15,649 31,938 24,825r 32,555 23 Foreign countries 337,074 385,380 304,259 42,229 45,121 32,806 15,970 31,907 24,916r 32,153 24 Europe 180,917 195,412 136,744 20,875 19,149 20,019 3,152 10,927 11,679' 17,052 25 France 2,216 5,028 3,869 380 350 462 192 487 255 1,083 26 Germany 4,067 12,362 3,174 385 132 681 680 370 -388 -71 21 Netherlands 1,130 1,538 -392 732 -49 -518 393 55 -36' 149 28 Switzerland 3,973 5,721 7,577 247 1,412 1,109 1,406 1,825 356 355 29 United Kingdom 141,223 152,772 90,910 15,540 15,309 13,022 -330 3,718 7,297' 10,357 30 Channel Islands and Isle of Man1 n.a. 2,000 5,315 20 92 -14 -20 1,203 1,342 2,239 31 Canada 13,287 4,595 1,789 385 -193 923 -611 165 -385' 541 32 Latin America and Caribbean 59,444 77,019 70,020 8,487 15,618 2,936 1,840 9,707 3,440' 4,339 33 Middle East1 2,076 2,338 1,939 9 -172 24 125 578 40 196 34 Other Asia 78,794 106,400 89,869 12,438 10,608 8,521 10,336 9,026 9,601 10,126 35 Japan 39,356 33,687 33,069 8,509 5,046 3,290 4,754 1,975 6,134 5,505 36 Africa 938 760 806 95 13 330 112 77 171 -18 37 Other countries 1,618 -1,144 3,092 -60 98 53 1,016 1,427 370' -83 38 Nonmonetary international and regional organizations -70 566 26 -15 -130 149 -321 31 -91 402 Foreign securities 39 Stocks, net purchases, or sales (-) -13,088 -50,113 2,504 -3,561 -7,927 -4,983 13,285 3,049 712 ^1,673 40 Foreign purchases 1,802,185 1,397,664 1,095,501 114,999 113,418 111,699 139,500 92,879 87,224 120,594 41 Foreign sales 1,815,273 1,447,777 1,092,997 118,560 121,345 116,682 126,215 89,830 86,512 125,267 42 Bonds, net purchases, or sales (-) -4,054 30,423 31,222 461 6,871 5,730 7,707 -1,583 1,096' 6,920 43 Foreign purchases 958,932 1,159,185 1,114,821 99,383 124,357 118,365 120,212 111,361 125,817' 123,139 44 Foreign sales 962,986 1,128,762 1,083,599 98,922 117,486 112,635 112,505 112,944 124,721' 116,219 45 Net purchases, or sales (-), of stocks and bonds -17,142 -19,690 33,726 -3,100 -1,056 747 20,992 1,466 l,808r 2,247 46 Foreign countries -17,278 -19,102 33,763 -3,204 -1,105 781 21,082 1,441 l,830r 2,194 47 Europe -25,386 -12,117 16,988 -4,805 647 -4,639 11,407 563 1,345' 679 48 Canada -3,888 2,943 5,731 1,565 56 2,240 1,918 8 -581' 197 49 Latin America and Caribbean -15,688 4,245 3,318 -1,106 -1,699 2,785 1,939 -600 -49T -32 50 24,488 -11,869 7,861 2,220 381 342 4,990 1,028 1,019 1,694 51 Japan 20,970 -20,116 -456 998 -518 -871 3,453 379 -861 13 52 943 -557 -526 -1,141 -118 8 205 393 -39 104 53 Other countries 2,253 -1,747 393 63 -372 45 623 49 583' ^148 54 Nonmonetary international and regional organizations ISO -587 -39 104 49 -34 -90 25 -22 53 1. Before January 2001, data included in United Kingdom. 3. Includes state and local government securities and securities of U.S. government 2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. Saudi Arabia, and United Arab Emirates (Trucial States). corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Holdings and Transactions A55 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (-) during period 2002 2002 AArreeaa oorr ccoouunnttrryy 22000000 22000011 Jan.- Apr. May June July Aug. Sept. Oct.P Oct. 1 Total estimated -54,032 18,514 51,680 -12,528 -539 10,896 21,023 1,120 26,257 3,032 2 Foreign countries -53,571 19,200 50,018 -12,838 -39 10,773 21,117 705 26,245 2,374 3 Europe -50,704 -20,604 -7,997 -8,844 -6,274 -371 4,533 -1,811 8,007 -5,416 4 Belgium2 73 -598 1,500 -71 8 292 274 1.333 -114 -261 Germany -7,304 -1,668 -8,408 -115 649 -587 -2,930 -2,041 -666 -734 6 Luxembourg2 n.a. 462 -1,227 -325 -166 85 -84 -14 -252 90 7 Netherlands 2,140 -6,728 -22,889 -3,295 -9,328 -2,487 147 -1,439 1,217 -2,527 8 Sweden 1,082 -1,190 395 103 55 192 -169 471 234 -193 9 Switzerland -10,326 1,412 -427 -1,262 341 359 246 -705 1,150 -1,727 10 United Kingdom -33,669 -7,279 27,631 -5,996 2,312 1,820 10,278 378 9,078 -1,079 11 Channel Islands and Isle of Man3 n.a. -179 1,097 -35 84 793 177 444 -43 -116 n Other Europe and former U.S.S.R -2,700 -4,836 -5,669 2,152 -229 -838 -3,406 -238 -2,597 1,131 13 Canada -550 -1,634 -6,970 -1,223 454 -1,634 -2,011 -1,671 875 -1,324 14 Latin America and Caribbean -4,914 4,272 20,378 -1,500 7,939 6,382 4,602 -11,831 7,757 6,978 15 Venezuela 1,288 290 15 -18 6 160 -58 -15 -79 5 16 Other Latin America and Caribbean -11,581 14,726 20,846 -1,918 1,933 3,298 3,736 -7,434 5,520 4,244 17 Netherlands Antilles 5,379 -10,744 -483 436 6,000 2,924 924 -4,382 2,316 2,729 18 Asia 1,639 36,332 40,998 -1,543 -2,826 5,838 12,931 15,668 9,664 1,620 19 Japan 10,580 16,114 25,661 3,019 195 2,454 7,651 6,573 12,750 169 70 Africa -414 -880 750 -176 -38 299 112 495 -93 12 21 Other 1,372 1,714 2,859 448 706 259 950 -145 35 504 22 Nonmonetary international and regional organizations —461 -686 1,662 310 -500 123 -94 415 12 665588 73 International —483 -290 1,164 398 -240 -21 -64 418 332299 24 Latin American Caribbean regional 76 41 16 -47 -14 28 11 -4 29 4 MEMO 75 Foreign countries -53,571 19,200 50,018 -12,838 -39 10,773 21,117 705 26,245 2,374 76 Official institutions -6,302 3,474 -8,000 -1,451 -69 2,161 -5,268 635 -3,511 -553 27 Other foreign -47,269 15,726 58,018 -11,387 30 8,612 26,385 70 29,756 2,927 Oil-exporting countries 78 Middle East4 3,483 865 -356 1,382 -753 -249 -1,338 -1,010 -362 1,003 29 Africa- 0 -2 -27 -25 0 0 0 -2 -1 0 1. Official and private transactions in marketable U.S. Treasury securities having an 3. Before January 2001, these data were included in the data reported for the United original maturity of more than one year. Data are based on monthly transactions reports. Kingdom. Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab countries. Emirates (Trucial States). 2. Before January 2001, combined data reported for Belgium and Luxembourg. 5. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • February 2003 3.28 FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U.S. DOLLAR1 Currency units per U.S. dollar except as noted 2002 July Aug. Sept. Oct. Nov. Dec. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 58.15 51.69 54.37 55.38 54.13 54.65 55.02 56.13 56.24 2 Brazil/real 1.8301 2.3527 2.9213 2.9414 3.1082 3.3548 3.7966 3.5924 3.6268 3 Canada/dollar 1.4855 1.5487 1.5704 1.5456 1.5694 1.5761 1.5780 1.5715 1.5592 4 China, P.R./yuan 8.2784 8.2770 8.2770 8.2768 8.2767 8.2760 8.2772 8.2772 8.2777 5 Denmark/krone 8.0953 8.3323 7.8862 7.4807 7.5948 7.5752 7.5732 7.4201 7.2874 6 European Monetary Union/euro3 0.9232 0.8952 0.9454 0.9935 0.9781 0.9806 0.9812 1.0013 1.0194 7 Greece/drachma 365.92 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Hong Kong/dollar 7.7924 7.7997 7.7997 7.8000 7.8008 7.7999 7.7995 7.7994 7.7988 9 India/rupee 45.00 47.22 48.63 48.79 48.62 48.46 48.39 48.29 48.15 10 Japan/yen 107.80 121.57 125.22 117.90 118.99 121.08 123.91 121.61 121.89 11 Malaysia/ringgit 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 12 Mexico/peso 9.459 9.337 9.663 9.779 9.839 10.071 10.094 10.195 10.225 13 New Zealand/dollar2 45.68 42.02 46.45 48.09 46.35 47.02 48.18 49.73 51.08 14 Norway/krone 8.8131 8.9964 7.9839 7.4694 7.6042 7.5018 7.4873 7.3157 7.1557 15 Singapore/dollar 1.7250 1.7930 1.7908 1.7524 1.7553 1.7682 1.7843 1.7653 1.7532 16 South Africa/rand 6.9468 8.6093 10.5176 10.1032 10.5878 10.5967 10.3058 9.6509 8.9479 17 South Korea/won 1,130.90 1,292.01 1,250.31 1,179.99 1,197.51 1,211.61 1,240.19 1,210.20 1,206.61 18 Sri Lanka/rupee 76.964 89.602 95.773 96.266 96.281 96.207 96.402 96.426 96.705 19 Sweden/krona 9.1735 10.3425 9.7233 9.3474 9.4610 9.3400 9.2846 9.0652 8.9303 20 Switzerland/franc 1.6904 1.6891 1.5567 1.4718 1.4972 1.4931 1.4932 1.4658 1.4388 21 Taiwan/dollar 31.260 33.824 34.536 33.272 33.884 34.573 34.947 34.673 34.799 21 Thailand/baht 40.210 44.532 43.019 41.257 42.193 42.893 43.641 43.353 43.318 23 United Kingdom/pound2 151.56 143.96 150.25 155.65 153.68 155.63 155.75 157.11 158.63 24 Venezuela/bolivar 680.52 724.10 1,161.19 1,317.38 1,379.73 1,458.39 1,440.50 1,358.61 1,328.29 Indexes4 NOMINAL 25 Broad (January 1997=100)= 119.67 126.09 127.26 124.20 125.64 126.67 127.69 126.38 125.78 26 Major currencies (March 1973=100)6 98.32 104.32 103.09 98.97 100.35 100.68 101.24 99.83 98.96 27 Other important trading partners (January 1997=100)7 130.33 136.34 141.20 140.47 141.69 143.71 145.28 144.43 144.45 REAL 28 Broad (March 1973=100)5 104.32 110.42 110.92 108.39 109.74 110.52' 111.27' 109.80' 109.22 29 Major currencies (March 1973=100)6 103.17 110.73 109.68 105.27 106.80 107.20 107.80' 106.26' 105.50 30 Other important trading partners (March 1973—100)7 114.53 119.21 121.87 121.60 122.79 124.18' 125.20' 123.71' 123.34 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. Starting with the February 2002 Bulletin, revised index values resulting from the table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, periodic revision of data that underlie the calculated trade weights are reported. For more see inside front cover. information on the indexes of the foreign exchange value of the dollar, see Federal Reserve 2. U.S. cents per currency unit. Bulletin, vol. 84 (October 1998), pp. 811-818. 3. The euro is reported in place of the individual euro area currencies. By convention, the 5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the of a broad group of U.S. trading partners. The weight for each currency is computed as an euro rate by using the fixed conversion rates (in currencies per euro) as shown below: average of U.S. bilateral import shares from and export shares to the issuing country and of a measure of the importance to U.S. exporters of that country's trade in third country markets. Euro equals 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 13.7603 Austrian schillings 1,936.27 Italian lire broad index currencies that circulate widely outside the country of issue. The weight for each 40.3399 Belgian francs 40.3399 Luxembourg francs currency is its broad index weight scaled so that the weights of the subset of currencies in the 5.94573 Finnish markkas 2.20371 Netherlands guilders index sum to one. 6.55957 French francs 200.482 Portuguese escudos 7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 1.95583 German marks 166.386 Spanish pesetas broad index currencies that do not circulate widely outside the country of issue. The weight .787564 Irish pounds 340.750 Greek drachmas for each currency is its broad index weight scaled so that the weights of the subset of currencies in the index sum to one. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A57 Guide to Special Tables and Statistical Releases SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks December 31, 2001 May 2002 A64 March 31, 2002 August 2002 A58 June 30, 2002 November 2002 A58 September 30, 2002 February 2003 A58 Terms of lending at commercial banks February 2002 May 2002 A66 May 2002 August 2002 A60 August 2002 November 2002 A60 November 2002 February 2003 A60 Assets and liabilities of U.S. branches and agencies of foreign banks December 31,2001 May 2002 All March 31, 2002 August 2002 A66 June 30, 2002 November 2002 A66 September 30, 2002 February 2003 A66 Pro forma financial statements for Federal Reserve priced services * March 31,2001 August 2001 A76 June 30,2001 October 2001 A64 September 30,2001 January 2002 A64 Residential lending reported under the Home Mortgage Disclosure Act 2000 September 2001 A64 2001 September 2002 A58 Disposition of applications for private mortgage insurance 2000 September 2001 A73 2001 September 2002 A69 Small loans to businesses and farms 2000 September 2001 A76 2001 September 2002 A70 Community development lending reported under the Community Reinvestment Act 2000 September 2001 A79 2001 September 2002 A58 STATISTICAL RELEASES—A List of Statistical Releases Published by the Federal Reserve is Printed Semiannually in the Bulletin Issue Page Schedule of anticipated release dates for periodic releases December 2002 A66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 Special Tables • February 2003 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, September 30, 2002 Millions of dollars except as noted Banks with Banks with foreign offices1 domestic Domestic offices only2 IItteemm TToottaall Total Domestic Total 1 Total assets 6,810,530 6,072,158 4,550,988 3,812,616 2,259,542 2 Cash and balances due from depository institutions 374,661 280.855 271,346 177,540 103,315 3 Cash items in process of collection, unposted debits, and currency and coin n.a. n.a. 129,703 126,665 n.a. 4 Cash items in process of collection and unposted debits n.a. n.a. n.a. 105,681 n.a. 5 Currency and coin n.a. n.a. n.a. 20.985 n.a. 6 Balances due from depository institutions in the United States n.a. n.a. 28,288 23.552 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. n.a. 99,567 13,600 n.a. 8 Balances due from Federal Reserve Banks n.a. n.a. 13,788 13,723 n.a. 9 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 1,266,744 n.a. 732,172 n.a. 534,571 10 U.S. Treasury securities 54,047 n.a. 31,897 n.a. 22,150 11 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 207,304 n.a. 7788..119922 n.a. 112299,,111133 12 Issued by U.S. government agencies 6,748 n.a. 3,818 n.a. 2,930 13 Issued by U.S. government-sponsored agencies 200,556 n.a. 74,374 n.a. 126,182 14 Securities issued by states and political subdivisions in the United States 100,916 n.a. 34,978 n.a. 65,938 15 Mortgage-backed securities (MBS) 684,548 n.a. 454,757 n.a. 229,791 16 Pass-through securities 451,630 n.a. 324,131 n.a. 127,499 17 Guaranteed by GNMA 91,000 n.a. 60,805 n.a. 30,195 18 Issued by FNMA and FHLMC 350,736 n.a. 254,573 n.a. 96,163 19 Other pass-through securities 9.894 n.a. 8,753 n.a. 1,140 20 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 232,918 n.a. 130,626 n.a. 102,292 21 Issued or guaranteed by FNMA, FHLMC or GNMA 155,335 n.a. 84,237 n.a. 71,097 22 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 11,593 n.a. 10,268 n.a. 1,324 23 All other mortgage-backed securities 65,991 n.a. 36,120 n.a. 29,871 74 Asset backed securities 102,262 n.a. 50,167 n.a. 52,095 75 Credit card receivables 37,252 n.a. 15,650 n.a. 21,602 26 Home equity lines 34,446 n.a. 21,534 n.a. 12,912 77 Automobile loans 12,617 n.a. 4,229 n.a. 8.388 28 Other consumer loans 1,391 n.a. 929 n.a. 462 79 Commercial and industrial loans 7,241 n.a. 3,785 n.a. 3,456 30 Other 9,315 n.a. 4,040 n.a. 5,275 31 Other debt securities 99,406 n.a. 71,704 n.a. 27,702 37 Other domestic debt securities 37,539 n.a. 14,104 n.a. 23,436 33 Foreign debt securities 61,867 n.a. 57,600 n.a. 4,267 34 Investments in mutual funds and other equity securities with readily determinable fair value 18.260 n.a. 10,477 n.a. 7,783 35 Federal funds sold and securities purchased under agreements to resell 325,922 275,502 227,941 177,522 97,980 36, Federal funds sold in domestic offices 162,661 162,661 81,314 81,314 81,347 37 Securities purchased under agreements to resell 163,261 112,841 146,627 96,208 16,633 38 Total loans and leases (gross) and lease-financing receivables (net) 3,987,533 3,705,740 2,568,770 2,286.977 1,418,763 39 LESS: Unearned income on loans 3,600 2.550 2,500 1,450 1,100 40 LESS: Loans and leases held for sale 193,392 n.a. 152,948 n.a. 40,444 41 Total loans and leases (net of unearned income) 3,790,541 n.a. 2,413,322 n.a. 1,377,219 47 LESS: Allowance for loan and lease losses 73,071 n.a. 49,965 n.a. 23,106 43 Loans and leases, net of unearned income and allowance 3,717,470 n.a. 2,363,357 n.a. 1,354,113 Total loans and leases, gross, by category 44 Loans secured by real estate 1,952,455 1,922,214 1,094,145 11,,006633,,990044 885588,,331100 45 Construction and land development n.a. 203,592 n.a. 101,769 101,823 46 Farmland n.a. 37,753 n.a. 7,020 30,733 47 One- to four family residential properties n.a. 1,074,697 n.a. 679,020 395,677 48 Revolving, open end loans, extended under lines of credit n.a. 201,204 n.a. 140,524 60,680 Closed-end loans secured by one- to four-familv residential properties 49 Secured by first liens n.a. 773,318 n.a. 478,814 294,504 50 Secured by junior liens n.a. 100,175 n.a. 59,682 40,493 51 Multifamily (five or more) residential properties n.a. 68,647 n.a. 35,236 33,411 52 Nonfarm nonresidential properties n.a. 537,525 n.a. 240,859 296,666 53 Loans to depository institutions and acceptances of other banks 133,422 110,572 125,067 102,217 8,355 54 Commercial banks in the United States n.a. n.a. 93,469 83,779 n.a. 55 Other depository institutions in the United States n.a. n.a. 10,861 10,852 n.a. 56 Banks in foreign countries n.a. n.a. 20,737 7,586 n.a. 57 Loans to finance agricultural production and other loans to farmers 47,370 46,728 10,191 9,549 37,179 58 Commercial and industrial loans 913,266 780,913 674,751 542,398 238,515 59 U.S. addressees (domicile) n.a. n.a. 547,499 533,193 n.a. 60 Non-U.S. addressees (domicile) n.a. n.a. 127,252 9,205 n.a. 61 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 635,589 575,732 390,359 330,501 245,231 6? 219,809 200,624 140,588 121,404 79,221 63 Other revolving credit plans 38,169 25,573 32,003 19,406 6,166 64 Other consumer loans (including single-payment, installment, and all student loans) 377,611 349,535 217,768 189,691 159,844 65 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 22,483 22,481 1133,,996666 1133,,996644 88,,551177 66 121,331 93,073 110,774 82,517 10,556 67 Loans to foreign governments and official institutions 6,157 2,421 6,145 2,408 13 68 115,174 90,652 104,630 80,109 10,544 69 Loans for purchasing and carrying securities n.a. n.a. n.a. 14,233 n.a. 70 All other loans (excludes consumer loans) n.a. n.a. n.a. 65,876 n.a. 71 Lease-financing receivables 161,617 154,027 149,517 141,927 12,100 7? 384,755 n.a. 380,790 n.a. 3,965 73 Premises and fixed assets (including capitalized leases) 77,382 n.a. 45,451 n.a. 31,930 74 Other real estate owned 4,144 n.a. 1,774 n.a. 2,370 75 Investments in unconsolidated subsidiaries and associated companies 8,043 n.a. 7,573 n.a. 469 76 Customers' liability on acceptances outstanding 5,789 n.a. 5,538 n.a. 251 77 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 32,412 n.a. 78 Intangible assets 118,793 n.a. 98.297 n.a. 20,496 79 Goodwill 80,655 n.a. 66.089 n.a. 14,566 80 Other intangible assets 38,138 n.a. 32,208 n.a. 5,930 81 All other assets 333,436 n.a. 263,799 n.a. 69,636 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A59 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 2002 Millions of dollars except as noted Banks with Banks with foreign offices' domestic IItteemm TToottaall DDoommeessttiicc offices only2 ttoottaall Total Domestic Total 82 Total liabilities, minority interest, and equity capital 6,810,530 n.a. 4,550,988 n.a. 2,259,542 83 Total liabilities 6,176,346 5,437,974 4,137,768 3,399,396 2,038,578 84 Total deposits 4,502,548 3,889,824 2,847,409 2,234,685 1,655,139 85 Individuals, partnerships, and corporations (include all certified and official checks) 4,076,507 3,624,298 2,544,166 2,091,957 1,532,341 86 U.S. government n.a. 19,989 n.a. 19,038 951 87 States and political subdivisions in the United States n.a. 187,814 n.a. 85,607 102,207 88 Commercial banks and other depository institutions in the United States 102,782 49,653 83,557 30,428 19,225 89 Banks in foreign countries 88,184 7,128 87,833 6,776 351 90 Foreign governments and official institutions (including foreign central banks) 26,688 942 26,624 878 64 91 Total transaction accounts n.a. 666,490 n.a. 358,917 307,573 92 Individuals, partnerships, and corporations (include all certified and official checks) n.a. 571,237 n.a. 301,345 269,893 93 U.S. government n.a. 1,575 n.a. 1,074 501 94 States and political subdivisions in the United States n.a. 54,472 n.a. 25,515 28,957 95 Commercial banks and other depository institutions in the United States n.a. 32,925 n.a. 24,859 8,066 96 Banks in foreign countries n.a. 5,664 n.a. 5,522 142 97 Foreign governments and official institutions (including foreign central banks) n.a. 616 n.a. 602 14 98 Total demand deposits n.a. 505,278 n.a. 312,616 192,662 99 Total nontransaction accounts n.a. 3,223,333 n.a. 1,875,767 1,347,566 100 Individuals, partnerships, and corporations (include all certified and official checks) n.a. 3,053,061 n.a. 1,790,613 1,262,448 101 U.S. government n.a. 18,414 n.a. 17,964 450 102 States and political subdivisions in the United States n.a. 133,342 n.a. 60,092 73,250 103 Commercial banks and other depository institutions in the United States n.a. 16,728 n.a. 5,569 11,159 104 Banks in foreign countries n.a. 1,464 n.a. 1,254 209 105 Foreign governments and official institutions (including foreign central banks) n.a. 326 n.a. 276 50 106 Federal funds purchased and securities sold under agreements to repurchase 527,747 482,381 407,178 361,812 120,569 107 Federal funds purchased in domestic offices 206,502 206,502 145,959 145,959 60,543 108 Securities sold under agreements to repurchase 321,245 275,879 261,219 215,853 60,026 109 Trading liabilities 251,321 n.a. 250,593 n.a. 728 110 Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases) 567,658 532,820 355,671 320,833 211,987 111 Banks' liability on acceptances executed and outstanding 5,828 3,810 5,577 3,558 251 112 Subordinated notes and debentures to deposits 92,116 n.a. 83,104 n.a. 9,013 113 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 105,174 n.a. 114 All other liabilities 229,126 n.a. 188,236 n.a. 40,891 115 Minority interest in consolidated subsidiaries 11,040 n.a. 9,728 n.a. 1,312 116 Total equity capital 623,144 n.a. 403,492 n.a. 219,653 MEMO 117 Trading assets at large banks2 384,729 202,587 380,779 198,637 3,950 118 U.S. Treasury securities (domestic offices) n.a. 23,711 n.a. 23,667 44 119 U.S. government agency obligations (excluding MBS) n.a. 9,540 n.a. 8,789 752 120 Securities issued by states and political subdivisions in the United States n.a. 2,174 n.a. 1,937 237 121 Mortgage-backed securities n.a. 10,454 n.a. 8,460 1,994 122 Other debt securities n.a. 28,417 n.a. 28,113 304 123 Other trading assets n.a. 20,416 n.a. 20,266 150 124 Trading assets in foreign offices 101,739 0 101,739 0 0 125 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 188,277 107,874 187,808 107,404 469 126 Total individual retirement (IRA) and Keogh plan accounts n.a. 167,082 n.a. 77,279 89,802 127 Total brokered deposits n.a. 238,195 n.a. 107,609 130,586 128 Fully insured brokered deposits n.a. 164,955 n.a. 66,407 98,547 129 Issued in denominations of less than $100,000 n.a. 89,225 n.a. 30,694 58,531 130 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. 75,730 n.a. 35,713 40,017 131 Money market deposit accounts (MMDAs) n.a. 1,379,292 n.a. 910,110 469,182 132 Other savings deposits (excluding MMDAs) n.a. 564,292 n.a. 340,706 223,586 133 Total time deposits of less than $100,000 n.a. 711,194 n.a. 307,812 403,382 134 Total time deposits of $ 100,000 or more n.a. 568,556 n.a. 317,140 251,417 135 Number of banks 7,908 7,908 130 n.a. 7,778 NOTE. The notation "n.a." indicates the lesser detail available from banks that do not have Foreign offices include branches in foreign countries, Puerto Rico, and US.-affiliated foreign offices, the inapplicability of certain items to banks that have only domestic offices, or insular areas; subsidiaries in foreign countries; all offices of Edge Act and agreement the absence of detail on a fully consolidated basis for banks that have foreign offices. corporations wherever located; and international banking facility (IBF). 1. All transactions between domestic and foreign offices of a bank are reported in "net due 2. Components of "Trading Assets at Large Banks" are reported only by banks that from" and "net due to" lines. All other lines represent transactions with parties other than the reported trading assets of $2 million or more any quarter of the preceding calendar year. domestic and foreign offices of each bank. Because these intra-office transactions are nullified by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets and liabilities, respectively, of the domestic and foreign offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 Special Tables • February 2003 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 4-8, 2002 A. Commercial and industrial loans made by all commercial banks1 Weighted- WWeeiigghhtteedd-- Amount of loans (percent) ( e l p a o f e v a f r e e n c r c e a r t n i g a v t t e ) e e 2 AAA ooo ((( fff mmm mmm lll ddd ooo ooo iiilll ooo aaa uuu lll lll iii nnn nnn lll ooo sss aaa ttt nnn rrr ooo sss sss ))) fff ((( AAA ttthhh vvv ooo ddd eee uuu rrr ooo sss aaa sss lll iii ggg lll aaa zzz aaa eee nnn eee rrr ddd sss lll ))) sss ooo aaa ooo nnn fff mm aavv aa D tt ee uu a rr rr y aa ii s gg tt yy ee 33 S c e o c l u la re te d r a b l y CCaallllaabbllee pp SS rree uu pp pp ee bb aa nn jjee yy aa cc mm ll tt tt yy ee tt oo nn tt c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 3.61 70,200 518 446 41.2 8.0 33.3 77.5 2 Minimal risk 3.01 3,434 686 227 31.0 11.3 28.4 89.7 3 Low risk 2.73 8,697 821 390 23.8 3.4 49.4 83.8 4 Moderate risk 3.69 25,918 551 638 48.6 11.5 30.6 84.0 5 Other 3.92 24,142 568 325 42.5 3.9 30.6 73.5 By maturity/repricing interval* 6 Zero interval 4.80 6,587 186 580 58.7 14.6 10.3 82.2 7 Minimal risk 4.24 228 244 1305 60.0 21.1 25.2 71.3 8 Low risk 3.05 1,129 452 246 29.8 5.6 26.5 59.8 9 Moderate risk 4.62 2,435 144 785 61.9 23.1 9.0 90.5 10 Other 5.75 2,608 198 484 67.0 10.4 3.7 84.2 11 Daily 3.12 26,505 563 263 28.9 11.7 37.4 67.4 12 Minimal risk 2.52 1,783 1,608 168 17.7 16.2 40.8 85.4 13 Low risk 2.40 3,377 1,437 224 8.8 1.2 77.8 83.4 14 Moderate risk 3.14 6,139 527 531 33.1 26.6 34.5 77.9 15 Other 3.21 10,258 672 159 32.2 4.0 22.8 57.8 16 2 to 30 days 3.41 18,100 841 350 30.1 5.1 41.2 82.9 17 Minimal risk 3.19 878 455 122 32.5 .4 14.2 98.0 18 Low risk 2.74 2,117 1,351 438 21.6 4.3 47.1 92.1 19 Moderate risk 3.52 7,859 1,494 426 30.0 6.3 39.5 84.0 20 Other 3.67 5,728 704 250 34.9 2.4 49.3 80.8 21 31 to 365 days 3.91 14,882 702 583 57.6 1.9 28.7 84.8 22 Minimal risk 3.85 523 532 127 58.2 9.0 12.9 98.1 23 Low risk 2.85 1,683 535 511 37.3 6.0 21.2 88.9 24 Moderate risk 3.80 6,981 848 696 68.4 1.3 29.8 86.2 25 Other 4.49 4,638 1,348 517 51.7 .9 33.4 90.2 Months 26 More than 365 days 4.72 3,881 449 45 81.4 4.0 26.3 84.9 27 Minimal risk 2.84 22 590 33 96.8 * * 96.5 28 Low risk 4.06 390 379 48 88.6 .7 4.9 89.3 28 Moderate risk .. 4.44 2,335 591 43 77.4 2.9 17.8 87.6 30 Other 5.40 848 416 44 89.8 3.3 67.3 89.7 Weighted- Weighted- average average risk maturity/ rating5 repricing interval" Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.65 2,436 3.3 115 84.8 27.3 3.2 82.7 32 100-999 4.80 8,233 3.4 138 69.9 18.3 8.0 86.8 33 1,000-9,999 3.52 19,494 3.2 83 34.3 7.2 33.3 80.1 34 10,000 or more 3.28 40,038 3.3 100 35.9 5.2 40.3 74.0 BASE RATE OF LOAN4 35 Prime7 5.17 15,713 3.4 87 69.5 17.7 2.1 89.5 36 Fed funds 2.24 11,292 3.5 17 4.3 3.2 41.7 61.9 37 Other domestic 2.60 6,269 2.7 20 12.8 22.8 62.3 41.9 38 Foreign 3.37 26,431 3.2 138 38.8 1.8 49.3 86.2 39 Other 3.96 10,494 3.2 163 61.3 5.7 13.1 75.6 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A61 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 4-8, 2002—Continued B. Commercial and industrial loans made by all domestic banks1 Weighted- Weighted- Amount of loans (percent) ( e l p a o f e v a f r e e n c r c e a r t n i g a v t t e ) e e 2 AAA ooo ((( fff mmm mmm lll ddd ooo ooo iiilll ooo aaa uuu lll lll iii nnn nnn lll ooo sss aaa ttt nnn rrr ooo sss sss ))) fff ((( AAA ttthhh vvv ooo ddd eee uuu rrr ooo aaa sss sss lll iii ggg lll aaa zzz aaa eee nnn eee rrr ddd sss lll ))) sss ooo aaa ooo nnn fff m av a D t e u a r y r a i s g t y e 3 S c e o c l u la re te d r a b l y CCaallllaabbllee pp SS rree uu pp pp ee bb aa nn jjee yy aa cc mm lltt tt yy ee tt nn oo tt c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 4.03 45,244 347 623 54.5 12.2 18.8 84.9 2 Minimal risk 3.62 2,234 459 328 45.1 17.4 2.7 84.8 3 Low risk 2.78 6,145 628 424 25.8 4.7 45.2 84.4 4 Moderate risk 3.90 21,397 467 743 56.9 13.6 20.4 83.7 5 Other 5.11 10,275 258 603 68.8 9.2 12.0 88.1 By maturity/repricing interval6 6 Zero interval 4.66 5,880 169 591 58.9 16.2 10.9 80.8 7 Minimal risk 4.24 226 246 1,317 59.6 21.3 25.5 71.0 8 Low risk 2.99 1,069 440 248 27.4 5.7 27.9 57.6 9 Moderate risk 4.59 2,249 134 755 65.5 24.8 9.5 90.0 10 Other 5.58 2,148 168 538 66.2 12.6 3.1 82.4 11 Daily 3.74 14,200 311 500 45.0 21.9 22.7 83.2 12 Minimal risk 3.19 932 896 333 33.8 31.0 .2 72.1 13 Low risk 2.57 2,348 1,073 319 11.7 1.6 69.1 90.6 14 Moderate risk 3.36 4,982 437 650 40.8 32.7 27.0 73.9 15 Other 4.93 3,118 214 546 66.1 13.0 7.3 82.1 16 2 to 30 days 3.67 11,093 561 467 39.1 7.5 20.7 88.2 17 Minimal risk 3.47 707 371 97 40.3 .5 * 99.5 18 Low risk 2.72 1,272 1,056 459 32.7 6.6 56.8 94.6 19 Moderate risk 3.75 5,995 1,247 548 35.0 7.3 22.6 83.4 20 Other 4.46 2,029 276 356 60.3 6.7 10.3 97.6 21 31 to 365 days 4.22 10,043 505 685 71.4 2.9 14.0 85.9 22 Minimal risk 4.70 347 365 151 72.6 13.6 .2 97.1 23 Low risk 2.67 1,069 363 397 24.0 9.5 11.1 83.7 24 Moderate risk 4.05 5,710 722 793 82.0 1.5 18.9 88.6 25 Other 5.46 2,121 771 675 74.9 2.0 9.7 93.1 Months 26 More than 365 days 4.72 3,784 440 45 81.1 4.1 24.5 85.6 27 Minimal risk 2.84 22 590 33 96.8 * * 96.5 28 Low risk 4.06 386 377 48 89.5 .8 4.0 89.2 28 Moderate risk . . . 4.45 2,293 583 43 77.0 3.0 16.3 89.1 30 Other 5.43 797 394 45 89.3 3.6 65.5 89.0 Weighted- Weighted- average average risk maturity/ rating5 repricing interval" Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.66 2,412 3.3 115 85.2 27.4 3.1 82.7 32 100-999 4.91 7,496 3.3 146 75.1 19.9 3.3 87.3 33 1,000-9,999 3.84 12,067 3.0 106 49.1 10.9 16.0 87.5 34 10,000 or more 3.68 23,269 3.0 157 47.4 8.9 26.8 82.9 BASE RATE OF LOAN4 35 Prime7 5.16 14,331 3.4 88 72.3 18.6 1.1 88.9 36 Fed funds 2.17 3,000 2.6 19 13.2 12.1 31.3 51.8 37 Other domestic 2.53 3,916 2.7 27 18.7 36.5 39.7 66.6 38 Foreign 3.64 15,584 3.1 205 52.1 3.1 30.0 88.5 39 Other 4.19 8,413 2.8 202 59.9 7.0 13.8 91.4 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Special Tables • February 2003 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 4-8, 2002—Continued C. Commercial and industrial loans made by large domestic banks1 Weighted- WWeeiigghhtteedd-- Amount of loans (percent) ( e l p a o f e v a f r e e n c r c e a t r n i g a v t e t ) e e 2 AAA ooo ((( fff mmm mmm lll ddd ooo ooo iiilll ooo aaa uuu lll lll iii nnn nnn lll ooo aaa sss ttt nnn rrr ooo sss sss ))) fff ((( AAA ttthhh vvv ooo ddd eee uuu rrr ooo sss aaa sss lll iii ggg lll aaa zzz aaa eee nnn eee rrr ddd sss lll ))) sss ooo aaa ooo nnn fff mm aavv aa D tt ee uu a rr rr y aa ii s gg tt yy ee 33 S c e o c l u la re te d r a b l y CCaallllaabbllee pp SS rree pp uu pp ee bb aa nn jjee yy aa cc mm lltt tt yy ee tt nn oo tt c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 3.85 40,725 575 580 50.7 9.9 20.2 86.4 2 Minimal risk 3.39 2,008 861 227 40.0 14.8 .7 86.3 3 Low risk 2.56 5,707 2,413 379 21.8 3.9 48.1 85.9 4 Moderate risk 3.75 19,698 1,001 707 54.3 11.7 21.7 83.9 5 Other 5.04 9,256 352 531 66.0 7.3 12.4 91.4 By maturity/repricing interval6 6 Zero interval 4.44 4,172 339 462 47.0 11.1 12.6 85.1 7 Minimal risk 3.88 118 528 305 32.9 5.6 11.3 90.4 8 Low risk 2.58 915 2,880 196 17.8 2.2 31.6 56.6 9 Moderate risk 4.33 1,567 239 593 55.9 20.5 11.6 94.4 10 Other 5.69 1,550 301 517 56.0 7.1 2.2 92.0 11 Daily 3.61 13,125 354 485 41.0 18.5 24.4 82.7 12 Minimal risk 3.17 917 1,527 334 33.1 31.3 * 71.7 13 Low risk 2.46 2,271 2,086 313 9.1 1.4 71.4 90.7 14 Moderate risk 3.19 4,608 596 647 36.7 31.0 29.0 72.3 15 Other 4.89 2,955 239 463 64.6 11.8 7.4 83.8 16 2 to 30 days 3.64 10,774 667 455 38.6 6.9 21.1 88.0 17 Minimal risk 3.44 698 535 97 40.4 .5 * 99.7 18 Low risk 2.66 1,216 2,180 453 32.7 6.7 59.4 94.5 19 Moderate risk 3.71 5,833 1,633 524 34.0 6.3 23.0 83.1 20 Other 4.45 2,002 291 353 59.9 6.3 10.1 97.8 21 31 to 365 days 4.04 9,215 3,247 693 69.8 1.9 15.0 89.0 22 Minimal risk 3.85 253 1,552 123 62.4 .0 * 99.5 23 Low risk 2.33 987 3,264 370 19.6 9.4 11.6 86.7 24 Moderate risk 3.94 5,483 5,324 796 81.9 .9 19.5 89.1 25 Other 5.38 2,000 2,296 636 73.5 1.5 10.2 95.3 Months 26 More than 365 days 4.31 3,222 1,815 38 78.9 1.2 26.2 91.3 27 Minimal risk * * * * * * * * 28 Low risk 3.55 317 3,237 37 90.2 .0 .2 99.9 28 Moderate risk . . , 4.17 2,067 3,203 39 75.4 1.6 16.6 91.7 30 Other 5.13 686 1,123 33 87.9 .6 71.2 92.1 Weighted- Weighted- average average risk maturity/ rating5 repricing interval" Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.01 1,317 3.6 40 81.6 28.2 1.2 91.6 32 100-999 4.62 5,468 3.4 61 70.8 16.8 2.3 93.9 33 1,000-9,999 3.75 11,135 3.0 98 46.2 10.2 16.6 90.1 34 10,000 or more 3.65 22,806 3.0 161 46.3 7.0 27.3 82.6 BASE RATE OF LOAN4 35 Prime7 5.08 11,264 3.4 78 67.3 12.9 .4 93.2 36 Fed funds 2.15 2,967 2.6 12 13.0 11.9 31.6 51.3 37 Other domestic 2.45 3,837 2.7 14 17.0 37.1 39.7 66.3 38 Foreign 3.64 15,313 3.2 206 52.1 3.0 30.1 88.7 39 Other 3.83 7,343 2.8 139 55.1 4.6 15.1 96.1 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A63 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 4-8, 2002—Continued D. Commercial and industrial loans made by small domestic banks' W ( e l p a o f e e v a f i r e e n g c r c h e a t r t n i g a e v t e t d ) e e 2 - AAA ooo ((( fff mmm mmm lll ddd ooo ooo iiilll ooo aaa uuu lll lll iii nnn nnn lll ooo sss aaa ttt nnn rrr ooo sss sss ))) fff ((( AAA ttthhh vvv ooo ddd eee uuu rrr ooo sss aaa sss lll iii ggg lll aaa zzz aaa eee nnn eee rrr ddd sss lll ))) sss ooo aaa ooo nnn fff W m a e v a D i t e g u a r h y r a i t s g t e y e d 3 - S c e o c l u la re te d r a b l y A CC m aa o llll u aa n bb t ll ee o f loan pp s SS rr ( pp ee uu p pp ee bb e nn aa jj r ee yy aa c cc ll mm e tt tt yy n ee tt t oo nn ) tt c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 5.62 4,519 76 1,009 88.2 33.4 5.8 70.6 2 Minimal risk 5.62 227 89 1,269 90.3 40.3 20.5 71.6 3 Low risk 5.69 439 59 1,032 77.6 14.3 7.0 65.7 4 Moderate risk 5.67 1,699 65 1,168 87.0 35.1 6.0 81.7 5 Other 5.71 1,020 75 1,224 93.7 26.1 7.9 58.5 By maturity/repricing interval6 6 Zero interval 5.19 1,707 76 896 88.1 28.7 7.0 70.1 7 Minimal risk 4.63 107 155 2,599 89.0 38.5 41.1 49.7 8 Low risk 5.38 155 73 616 84.6 26.5 6.1 63.6 9 Moderate risk 5.21 682 67 1,138 87.5 34.4 4.9 79.9 10 Other 5.29 598 78 582 92.6 27.0 5.3 57.6 11 Daily 5.27 1,075 126 672 94.1 63.1 1.8 89.0 12 Minimal risk 4.51 15 35 257 71.3 15.0 11.0 99.2 13 Low risk 5.80 77 70 494 89.7 9.4 2.9 88.5 14 Moderate risk 5.39 374 102 692 90.9 53.0 2.2 93.4 15 Other 5.59 163 74 1,938 92.3 35.9 4.4 51.9 16 2 to 30 days 4.65 319 89 881 55.0 26.4 7.0 94.4 17 Minimal risk 5.61 9 14 70 35.7 2.8 * 83.7 18 Low risk 4.00 56 87 608 32.5 5.6 .1 98.5 19 Moderate risk 5.03 162 131 1,394 69.9 42.9 9.7 94.6 20 Other 4.50 27 56 595 92.2 31.0 24.2 81.6 21 31 to 365 days 6.32 828 49 594 89.6 14.0 2.5 51.0 22 Minimal risk 6.93 95 120 224 99.8 49.9 .8 90.8 23 Low risk 6.78 82 31 712 76.3 10.4 5.1 47.2 24 Moderate risk 6.57 227 33 707 85.4 16.8 5.6 76.9 25 Other 6.77 121 64 1,311 97.6 11.2 1.4 56.1 Months 26 More than 365 days 7.09 562 82 86 93.8 21.2 14.7 52.5 27 Minimal risk * * * * * * * * 28 Low risk 6.34 70 75 101 86.5 4.2 21.3 40.6 28 Moderate risk . . 7.01 226 69 76 91.7 15.3 13.8 65.0 30 Other 7.33 111 78 114 97.7 22.0 30.5 69.9 Weighted- Weighted- average average risk maturity/ rating5 repricing interval" Days SIZE OF LOAN (thousands of dollars) 31 1-99 6.45 1,095 3.1 206 89.5 26.6 5.3 72.0 32 100-999 5.72 2,028 3.2 373 86.8 28.2 6.1 69.7 33 1,000-9,999 4.85 932 2.9 198 83.9 19.7 8.8 56.2 34 10,000 or more * BASE RATE OF LOAN4 35 Prime7 5.43 3,067 3.2 124 90.4 39.6 3.8 73.3 36 Fed funds 4.03 33 2.8 657 29.4 31.3 * 97.1 37 Other domestic 6.55 79 2.5 650 99.6 10.0 38.1 81.8 38 Foreign 3.58 270 2.2 151 50.2 8.2 23.7 78.7 39 Other 6.68 1,070 3.0 634 92.6 23.9 5.1 59.2 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • February 2003 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 4-8, 2002—Continued E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks' Weighted- Weighted- Amount of loans (percent) average Amount of Average loan average effective loans size maturity' ( l p o e a r n c e r n a t t ) e 2 o ( f m d i o ll l i l o a n r s s ) (tho d u o s ll a a n r d s) s of S c e o c l u la re te d r a b l y p S re u p b a je y c m t e to n t c M om ad m e i u tm nd e e n r t Days penalty LOAN RISK5 1 All commercial and industrial loans 2.85 24,955 4.834 137 17.1 59.6 2 Minimal risk 1.88 1,199 8,862 45 4.5 76.4 3 Low risk 2.60 2,551 3.193 308 18.8 .4 59.6 82.2 4 Moderate risk 2.71 4,521 3,823 149 9.5 1.6 78.9 85.0 5 Other 3.03 13,867 5,362 133 23.1 .0 44.4 62.7 By maturity/repricing interval6 6 Zero interval 707 7 Minimal risk 8 Low risk 4.10 60 882 216 72.0 4.3 1.3 99.6 9 Moderate risk 5.01 186 1,165 1,130 17.9 3.6 1.9 96.4 10 Other 6.56 460 1,189 241 70.5 .2 6.5 92.6 11 Daily 2.42 12,305 8,708 54.4 49.3 12 Minimal risk 1.78 850 12,563 85.3 100.0 13 Low risk 2.03 1,029 6,385 2.3 97.5 66.8 14 Moderate risk 2.19 1,158 4,990 .2 66.6 95.3 15 Other 2.45 7,140 10,049 17.4 29.6 47.1 16 2 to 30 days 3.00 7,007 3,954 73.7 74.5 17 Minimal risk 18 Low risk 2.77 845 2,331 404 4.9 32.5 88.2 19 Moderate risk 2.79 1,865 4.119 32 14.2 3.3 93.7 85.8 20 Other 3.24 3,699 4.724 195 20.9 .1 70.7 71.6 21 31 to 365 days 3,708 59.3 22 Minimal risk 23 Low risk 3.15 614 3,025 716 60.4 38.9 98.0 24 Moderate risk 2.69 1,270 4,044 250 7.1 78.7 75.1 25 Other 3.67 2,517 3,642 379 32.2 53.4 87.8 26 More than 365 days 27 Minimal risk . . . 28 Low risk 28 Moderate risk . . 30 Other Weighted- Weighted- average average risk maturity/ rating5 repricing interval® Days SIZE OF LOAN (thousands of dollars) 31 1-99 4.76 23 3.4 40.0 10.6 16.4 80.0 32 100-999 3.68 737 3.5 17.1 2.5 55.6 82.1 33 1,000-9,999 3.02 7,426 3.5 10.2 1.2 61.3 68.2 34 10,000 or more 2.74 16,768 3.7 20.1 59.0 61.5 BASE RATE OF LOAN4 35 Prime7 5.32 1,382 41.2 12.9 95.2 36 Fed funds 2.26 8,292 1.0 45.4 65.6 37 Other domestic 2.71 2,353 2.3 3.1 100.0 38 Foreign 2.98 10,848 3.4 19.7 77.0 82.8 39 Other 3.04 2.081 4.8 67.1 10.1 11.7 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A65 NOTES TO TABLE 4.23 NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions 5. A complete description of these risk categories is available from the Banking Analysis made during the first full business week in the mid-month of each quarter. The authorized Section, Mail Stop 81, Board of Governors of the Federal Reserve System, Washington, DC panel size for the survey is 348 domestically chartered commercial banks and 50 U.S. 20551. The category "Moderate risk" includes the average loan, under average economic branches and agencies of foreign banks. The sample data are used to estimate the terms of conditions, at the typical lender. The category "Other" includes loans rated "acceptable" as loans extended during that week at all domestic commercial banks and all U.S. branches and well as special mention or classified loans. The weighted-average risk rating published for agencies of foreign banks. Note that the terms on loans extended during the survey week may loans in rows 31-39 are calculated by assigning a value of "1" to minimal risk loans; "2" to differ from those extended during other weeks of the quarter. The estimates reported here are low risk loans; "3" to moderate risk loans, "4" to acceptable risk loans; and "5" to special not intended to measure the average terms on all business loans in bank portfolios. mention and classified loans. These values are weighted by loan amount and exclude loans 1. As of March 31, 2001, assets of the large banks were at least $4 billion. Median total with no risk rating. Some of the loans in lines 1,6, 11, 16, 21, 26, and 31-39 are not rated for assets for all insured banks were roughly $80 million. Assets at all U.S. branches and agencies risk. averaged $2.7 billion. 6. The maturity/repricing interval measures the period from the date the loan is made until 2. Effective (compounded) annual interest rates are calculated from the stated rate and it first may reprice or it matures. For floating-rate loans that are subject to repricing at any other terms of the loans and weighted by loan amount. The standard error of the loan rate for time—such as many prime-based loans—the maturity/repricing interval is zero. For floatingall commercial and industrial loans in the current survey (line 1, column 1) is 0.10 percentage rate loans that have a scheduled repricing interval, the maturity/repricing interval measures point. The chances are about two out of three that the average rate shown would differ by less the number of days between the date the loan is made and the date on which it is next than this amount from the average rate that would be found by a complete survey of the scheduled to reprice. For loans having rates that remain fixed until the loan matures universe of all banks. (fixed-rate loans), the matuirty/repricing interval measures the number of days between the 3. Average maturities are weighted by loan amount and exclude loans with no stated date the loan is made and the date on which it matures. Loans that reprice daily mature or maturities. reprice on the business day after they are made. Owing to weekends and holidays, such loans 4. The most common base pricing rate is that used to price the largest dollar volume of may have maturity/repricing intervals in excess of one day; such loans are not included in the loans. Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or "2 to 30 day" category. "reference" rate); the federal funds rate; domestic money market rates other than the prime 7. For the current survey, the average reported prime rate, weighted by the amount of loans rate and the federal funds rate; foreign money market rates; and other base rates not included priced relative to a prime base rate, was 4.64 percent for all banks, 4.61 percent for large in the foregoing classifications. domestic banks, 4.72 percent for small domestic banks, and 4.65 percent for U.S. branches and agencies of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • February 2003 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 20021 Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 1 Total assets4 1,029,094 113,098 876,770 90,250 17,096 4,867 42,524 3,260 2 Claims on nonrelated parties 765,036 49,597 659,816 45,232 16,623 1,127 39,148 1,951 3 Cash and balances due from depository institutions 61,087 15,557 50,898 13,021 992 495 2,525 1,907 4 Cash items in process of collection and unposted debits 2.752 0 2,669 0 2 0 49 0 5 Currency and coin (U.S. and foreign) 11 n.a. 8 n.a. 1 n.a. 0 n.a. 6 Balances with depository institutions in United States 42,284 6,249 36,178 5,296 703 228 1,121 632 7 U.S. branches and agencies of other foreign banks (including their IBFs) 37,474 5,986 31,981 5,096 493 178 1,075 632 8 Other depository institutions in United States (including their IBFs) 4,810 263 4,198 200 210 50 46 0 9 Balances with banks in foreign countries and with foreign central banks 15,223 9,308 11,334 7,724 268 267 1,331 1,275 10 Foreign branches of U.S. banks 204 153 176 125 28 28 0 0 11 Banks in home country and home-country central banks 4,796 1,828 2,555 1,828 0 0 6 0 12 All other banks in foreign countries and foreign central banks 10,223 7,327 8,603 5,771 240 239 1,325 1,275 13 Balances with Federal Reserve Banks 816 n.a. 708 n.a. 18 n.a. 25 n.a. 14 Total securities and loans 437,785 25,675 366,458 23,960 15,086 593 25,695 37 15 Total securities, book value 132,047 4,318 116,898 4,009 1,415 247 3,464 14 16 U.S. Treasury 18,670 n.a. 18,217 n.a. 57 n.a. 306 n.a. 17 Obligations of U.S. government agencies and corporations 29,796 n.a. 27,907 n.a. 28 n.a. 1,376 n.a. 18 Other bonds, notes, debentures, and corporate stock (including state and local securities) 83.581 4,318 70,774 4,009 1,330 247 1,782 14 19 Securities of foreign governmental units 8.521 2,804 8,168 2,715 126 47 176 14 20 Mortgage-backed securities 25.346 0 22,582 0 205 0 0 0 21 Other asset-backed securities 15,097 20 8,787 20 0 0 0 0 22 All other 34.617 1,495 31,238 1,275 999 200 1,606 0 23 Federal funds sold and securities purchased under agreements to resell 106.073 7,313 103,811 7,220 297 34 1,475 0 24 Depository institutions in the United States 22,763 2,780 21,994 2,687 297 34 0 0 25 Other 83,310 4,533 81,817 4,533 0 0 1,475 0 26 Total loans, gross 306,072 21,370 249,824 19,963 13,703 347 22,239 23 27 LESS: Unearned income on loans 334 14 264 12 33 1 8 0 28 EQUALS: Loans, net 305,738 21,357 249,560 19,950 13,671 346 22,231 23 Total loans, gross, by category 29 Real estate loans 19,168 160 15,226 160 2,955 0 59 0 30 Loans to depository institutions and acceptances of other banks 75,660 8.029 62,984 7,292 1,955 233 5,686 22 31 Commercial banks in United States (including their IBFs) 5,477 1,255 4,700 1,020 458 140 6 0 32 U.S. branches and agencies of other foreign banks 3,254 1,254 2,493 1,020 453 140 0 0 33 Other commercial banks in United States 2,223 1 2,207 1 5 0 6 0 34 Other depository institutions in United States (including their IBFs) . . . 29 0 29 0 0 0 0 0 35 Banks in foreign countries 13,217 6,430 11,274 5,928 146 93 778 22 36 Foreign branches of U.S. banks 229 197 229 197 0 0 0 0 37 Other banks in foreign countries 12,988 6,233 11,045 5,731 146 93 778 22 38 Loans to other financial institutions 56,937 344 46,981 344 1,351 0 4,902 0 39 Commercial and industrial loans 190,488 11,360 152,697 10,746 8,305 92 15,693 0 40 U.S. addressees (domicile) 153,773 55 121,591 55 7,757 0 13,891 0 41 Non-U.S. addressees (domicile) 36,714 11,304 31,106 10,691 548 92 1,802 0 42 Loans to foreign governments and official institutions (including foreign central banks) 4,296 1,697 3,709 1,654 224 22 240 0 43 Loans for purchasing or carrying securities (secured and unsecured) .... 11,612 0 11,373 0 0 0 116 0 44 All other loans 4,240 125 3,588 111 264 0 84 0 45 Lease financing receivables (net of unearned income) 608 0 248 0 0 0 360 0 46 U.S. addressees (domicile) 555 0 248 0 0 0 307 0 47 Non-U.S. addressees (domicile) 53 0 0 0 0 0 53 0 48 Trading assets 126,977 203 109,173 203 52 0 7,809 0 49 All other assets 33,115 848 29,476 828 197 5 1,643 7 50 Customers' liabilities on acceptances outstanding 862 n.a. 518 n.a. 79 n.a. 235 n.a. 51 U.S. addressees (domicile) 421 n.a. 316 n.a. 79 n.a. 25 n.a. 52 Non-U.S. addressees (domicile) 441 n.a. 203 n.a. 0 n.a. 210 n.a. 53 Other assets including other claims on nonrelated parties 32,253 848 28,958 828 117 5 1,409 7 54 Net due from related depository institutions5 264,058 63,501 216,954 45,017 474 3,741 3,376 1,309 55 Net due from head office and other related depository institutions5 .... 264,058 n.a. 216,954 n.a. 474 n.a. 3,376 n.a. 56 Net due from establishing entity, head office, and other related depository institutions5 n.a. 63,501 n.a. 45,017 n.a. 3,741 n.a. 1,309 57 Total liabilities4 1,029,094 113,098 876,770 90,250 17,096 4,867 42,524 3,260 58 Liabilities to nonrelated parties 900,079 99,903 772,291 78,455 8,851 4,723 38,774 2,282 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A67 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 2002'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u t F d a s i l n g I o B n F ly s exc T IB l o u t F d a s i l n g I o B n F ly s exc T IB l o u t F d a s i l n g I o B n F ly s 59 Total deposits and credit balances 460,818 67,762 388,949 54,412 2,963 1,590 14,888 1,175 60 Individuals, partnerships, and corporations (including certified and official checks) 368,411 7,562 302,565 3,532 2,476 111100 14,486 9 61 US. addressees (domicile) 353,416 17 293,202 17 1,047 0 14,332 0 62 Non-U.S. addressees (domicile) 14,995 7,545 9,363 3,515 1,429 110 154 9 63 Commercial banks in United States (including their IBFs) 60,115 6,346 55,468 5,868 445 154 401 40 64 U.S. branches and agencies of other foreign banks 18,810 5,854 18,384 5,388 35 154 0 40 65 Other commercial banks in United States 41,305 491 37,084 480 410 0 401 0 66 Banks in foreign countries 6,073 29,419 5,723 25,449 29 487 0 411 67 Foreign branches of U.S. banks 1,019 2,389 1,019 2,059 0 19 0 0 68 Other banks in foreign countries 5,054 27,030 4,704 23,389 29 468 0 411 69 Foreign governments and official institutions (including foreign central banks) 6,540 24,434 6,204 19,563 7 883399 11 771166 70 All other deposits and credit balances 19,679 0 18,989 0 5 0 00 0 71 Transaction accounts and credit balances (excluding IBFs) 9,110 n.a. 7,412 n.a. 277 n.a. 218 n.a. 72 Individuals, partnerships, and corporations (including certified and official checks) 8,067 n.a. 6,551 n.a. 224433 n.a. 221177 n.a. 73 U.S. addressees (domicile) 5,486 n.a. 5,104 n.a. 84 n.a. 212 n.a. 74 Non-U.S. addressees (domicile) 2,581 n.a. 1,447 n.a. 159 n.a. 6 n.a. 75 Commercial banks in United States (including their IBFs) 40 n.a. 40 n.a. 0 n.a. 0 n.a. 76 U.S. branches and agencies of other foreign banks 5 n.a. 5 n.a. 0 n.a. 0 n.a. 77 Other commercial banks in United States 36 n.a. 35 n.a. 0 n.a. 0 n.a. 78 Banks in foreign countries 682 n.a. 551 n.a. 29 n.a. 0 n.a. 79 Foreign branches of U.S. banks 0 n.a. 0 n.a. 0 n.a. 0 n.a. 80 Other banks in foreign countries 681 n.a. 551 n.a. 29 n.a. 0 n.a. 81 Foreign governments and official institutions (including foreign central banks) 218 n.a. 178 n.a. 1 n.a. 11 n.a. 82 All other deposits and credit balances 103 n.a. 91 n.a. 4 n.a. 00 n.a. 83 Nontransaction accounts (including MMDAs, excluding IBFs) 451,708 n.a. 381,537 n.a. 2,686 n.a. 14,670 n.a. 84 Individuals, partnerships, and corporations (including certified and official checks) 360,344 n.a. 296,013 n.a. 2,234 n.a. 1144,,226699 n.a. 85 U.S. addressees (domicile) 347,930 n.a. 288,098 n.a. 963 n.a. 14,120 n.a. 86 Non-U.S. addressees (domicile) 12,414 n.a. 7,916 n.a. 1,270 n.a. 149 n.a. 87 Commercial banks in United States (including their IBFs) 60,075 n.a. 55,428 n.a. 445 n.a. 401 n.a. 88 U.S. branches and agencies of other foreign banks 18,805 n.a. 18,380 n.a. 35 n.a. 0 n.a. 89 Other commercial banks in United States 41,270 n.a. 37,049 n.a. 410 n.a. 401 n.a. 90 Banks in foreign countries 5,391 n.a. 5,172 n.a. 0 n.a. 0 n.a. 91 Foreign branches of U.S. banks 1,019 n.a. 1,019 n.a. 0 n.a. 0 n.a. 92 Other banks in foreign countries 4,372 n.a. 4,153 n.a. 0 n.a. 0 n.a. 93 Foreign governments and official institutions (including foreign central banks) 6,322 n.a. 6,027 n.a. 6 n.a. 00 n.a. 94 All other deposits and credit balances 19,575 n.a. 18,897 n.a. 1 n.a. 0 n.a. 95 IBF deposit liabilities n.a. 67,762 n.a. 54,412 n.a. 1,590 n.a. 1,175 96 Individuals, partnerships, and corporations (including certified and official checks) n.a. 7,562 n.a. 3,532 n.a. 110 n.a. 9 97 U.S. addressees (domicile) n.a. 17 n.a. 17 n.a. 0 n.a. 0 98 Non-U.S. addressees (domicile) n.a. 7,545 n.a. 3,515 n.a. 110 n.a. 9 99 Commercial banks in United States (including their IBFs) n.a. 6,346 n.a. 5,868 n.a. 154 n.a. 40 100 U.S. branches and agencies of other foreign banks n.a. 5,854 n.a. 5,388 n.a. 154 n.a. 40 101 Other commercial banks in United States n.a. 491 n.a. 480 n.a. 0 n.a. 0 102 Banks in foreign countries n.a. 29,419 n.a. 25,449 n.a. 487 n.a. 411 103 Foreign branches of U.S. banks n.a. 2,389 n.a. 2,059 n.a. 19 n.a. 0 104 Other banks in foreign countries n.a. 27,030 n.a. 23,389 n.a. 468 n.a. 411 105 Foreign governments and official institutions (including foreign central banks) n.a. 24,434 n.a. 19,563 n.a. 839 n.a. 716 106 All other deposits and credit balances n.a. 0 n.a. 0 n.a. 0 n.a. 0 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • February 2003 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 2002'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s 107 Federal funds purchased and securities sold under agreements to repurchase 183,714 16,177 167,367 11,428 1,168 390 5,678 599 108 Depository institutions in the United States 30,807 2,606 24,030 1,255 863 331 1,947 109 109 Other 152,907 13,571 143,338 10,173 305 59 3,731 490 110 Other borrowed money 75,803 14,931 65,474 11,615 2,876 2,734 4,800 503 111 Owed to nonrelated commercial banks in United States (including their IBFs) 11,305 3,038 10,295 2,375 463 348 438 289 112 Owed to U.S. offices of nonrelated U.S. banks 5,901 621 5,577 469 152 52 147 100 113 Owed to U.S. branches and agencies of nonrelated foreign banks 5,405 2,418 4,718 1,906 311 296 291 189 114 Owed to nonrelated banks in foreign countries 11,648 9,835 9,397 7,749 1,841 1,820 215 215 115 Owed to foreign branches of nonrelated U.S. banks 1,366 1,233 1,161 1,085 169 148 0 0 116 Owed to foreign offices of nonrelated foreign banks 10,281 8,602 8,236 6,663 1,672 1,672 215 215 117 Owed to others 52,850 2,057 45,782 1,492 571 565 4,148 0 118 A11 other liabilities 111,983 1,033 96,089 1,000 256 10 12,232 4 119 Branch or agency liability on acceptances executed and outstanding 961 n.a. 569 n.a. 79 n.a. 228811 n.a. 120 Trading liabilities 81,729 32 69,661 31 58 0 10,202 1 121 Other liabilities to nonrelated parties 29,293 1,002 25,859 970 118 10 1,749 2 122 Net due to related depository institutions5 129,014 13,195 104,479 11,795 8,245 144 3,750 978 123 Net due to head office and other related depository institutions5 129,014 n.a. 104,479 n.a. 8,245 n.a. 3,750 n.a. 124 Net due to establishing entity, head office, and other related depository institutions5 n.a. 13,195 n.a. 11,795 n.a. 144 n.a. 997788 MEMO 125 Holdings of own acceptances included in commercial and industrial loans 596 n.a. 383 n.a. 1 n.a. 114499 n.a. 126 Commercial and industrial loans with remaining maturity of one year or less (excluding those in nonaccrual status) 87,895 n.a. 64,157 n.a. 4,732 n.a. 1100,,554411 n.a. 127 Predetermined interest rates 34,712 n.a. 21,893 n.a. 1,903 n.a. 7,086 n.a. 128 Floating interest rates 53,183 n.a. 42,265 n.a. 2,829 n.a. 3,455 n.a. 129 Commercial and industrial loans with remaining maturity of more than one year (excluding those in nonaccrual status) 95,072 n.a. 82,508 n.a. 3,357 n.a. 44,,555533 n.a. 130 Predetermined interest rates 16,374 n.a. 14,650 n.a. 412 n.a. 637 n.a. 131 Floating interest rates 78,698 n.a. 67,859 n.a. 2,945 n.a. 3,917 n.a. Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A69 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 20021—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm Total IBFs Total IBFs Total IBFs Total IBFs ex I c B lu F d s i 3 n g only3 exc IB lu F d s i ng only exc IB lu F d s i ng only exc IB lu F d s i ng only 111133332222 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss 465,024 n.a. 394,417 n.a. 2,555 n.a. 14,630 n.a. 111133333333 TTTTiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 445,511 n.a. 376,622 n.a. 2,538 n.a. 14,529 n.a. 111133334444 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 19,513 n.a. 17,795 n.a. 17 n.a. 101 n.a. All states2 New York California Illinois Total Total Total Total including IBFs including IBFs including IBFs including IBFs IBFs3 only3 IBFs only IBFs only IBFs only 111133335555 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 33,294 n.a. 31,088 n.a. 1,525 n.a. 404 n.a. 111133336666 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 294 0 154 0 56 0 18 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of either because the item is not an eligible IBF asset or liability or because that level of detail is Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first not reported for IBFs. From December 1981 through September 1985, IBF data were used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From included in all applicable items reported. November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 4. Total assets and total liabilities include net balances, if any, due from or owed to related monthly FR 886a report. Aggregate data from that report were available through the Federal banking institutions in the United States and in foreign countries (see note 5). On the former Reserve monthly statistical release G. 11, last issued on July 10, 1980. Data in this table and in monthly branch and agency report, available through the G.ll monthly statistical release, the G.l 1 tables are not strictly comparable because of differences in reporting panels and in gross balances were included in total assets and total liabilities. Therefore, total asset and total definitions of balance sheet items. liability figures in this table are not comparable to those in the G.l 1 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases, two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item, file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Bulletin • February 2003 Index to Statistical Tables References are to pages A3-A69, although the prefix "A" is omitted in this index. ACCEPTANCES, bankers (See Bankers acceptances) Federal Land Banks, 33 Assets and liabilities (See also Foreigners) Federal National Mortgage Association, 28, 32, 33 Commercial banks, 15-21, 58-59 Federal Reserve Banks Domestic finance companies, 30, 31 Condition statement, 10 Federal Reserve Banks, 10 Discount rates (See Interest rates) Foreign banks, U.S. branches and agencies, 66-9 U.S. government securities held, 5, 10, 11, 25 Foreign-related institutions, 20 Federal Reserve credit, 5, 6, 10, 12 Automobiles Federal Reserve notes, 10 Consumer credit, 34 Federally sponsored credit agencies, 28 Production, 42, 43 Finance companies Assets and liabilities, 30 BANKERS acceptances, 5, 10 Business credit, 31 Bankers balances, 15-21, 66-9 (See also Foreigners) Loans, 34 Bonds (See also U.S. government securities) Paper, 22, 23 New issues, 29 Float, 5 Rates, 23 Flow of funds, 35-9 Business loans (See Commercial and industrial loans) Foreign banks, U.S. branches and agencies, 66-9 Foreign currency operations, 10 CAPACITY utilization, 40, 41 Foreign deposits in U.S. banks, 5 Capital accounts Foreign exchange rates, 56 Commercial banks, 15-21, 58-59 Foreign-related institutions, 20 Federal Reserve Banks, 10 Foreigners Certificates of deposit, 23 Claims on, 46, 49-51, 53 Commercial and industrial loans Liabilities to, 45-8, 52, 54, 55 Commercial banks, 15-21, 58-59, 66-9 Weekly reporting banks, 17, 18 GOLD Commercial banks Certificate account, 10 Assets and liabilities, 15-21, 58-59 Stock, 5, 45 Commercial and industrial loans, 15-21, 58-59, 60-5 Government National Mortgage Association, 28, 32, 33 Consumer loans held, by type and terms, 34, 60-5 Real estate mortgages held, by holder and property, 33 INDUSTRIAL production, 42, 43 Terms of lending, 58-59 Insurance companies, 25, 33 Time and savings deposits, 4 Interest rates Commercial paper, 22, 23, 30 Bonds, 23 Condition statements (See Assets and liabilities) Commercial banks, 60-5 Consumer credit, 34 Consumer credit, 34 Corporations Federal Reserve Banks, 7 Money and capital markets, 23 Security issues, 29, 55 Mortgages, 32 Credit unions, 34 Prime rate, 22, 60-5 Currency in circulation, 5, 13 International capital transactions of United States, 44-55 Customer credit, stock market, 24 International organizations, 46, 47, 49, 52, 53 Investment companies, issues and assets, 30 DEBT (See specific types of debt or securities) Investments (See also specific types) Demand deposits, 15-21 Commercial banks, 4, 15-21, 60-5 Depository institutions Federal Reserve Banks, 10, 11 Reserve requirements, 8 Financial institutions, 33 Reserves and related items, 4—6, 12, 58-59 Deposits (See also specific types) LIFE insurance companies (See Insurance companies) Commercial banks, 4, 15-21, 58-59 Loans (See also specific types) Federal Reserve Banks, 5, 10 Commercial banks, 15-21, 58-59, 60-5 Discount rates at Reserve Banks and at foreign central banks and Federal Reserve Banks, 5-7, 10, 11 foreign countries (See Interest rates) Financial institutions, 33 Discounts and advances by Reserve Banks (See Loans) Foreign banks, U.S. branches and agencies, 66-9 Insured or guaranteed by United States, 32, 33 EURO, 56 MANUFACTURING FARM mortgage loans, 33 Capacity utilization, 40, 41 Federal agency obligations, 5, 9-11, 26, 27 Production, 42, 43 Federal credit agencies, 28 Margin requirements, 24 Federal finance Member banks, reserve requirements, 8 Debt subject to statutory limitation, and types and ownership of Mining production, 43 gross debt, 25 Monetary and credit aggregates, 4, 12 Federal Financing Bank, 28 Money and capital market rates, 23 Federal funds, 23 Money stock measures and components, 4, 13 Federal Home Loan Banks, 28 Mortgages (See Real estate loans) Federal Home Loan Mortgage Corporation, 28, 32, 33 Mutual funds, 13, 30 Federal Housing Administration, 28, 32, 33 Mutual savings banks (See Thrift institutions) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 OPEN market transactions, 9 Stock market, selected statistics, 24 Stocks (See also Securities) PRICES New issues, 29 Stock market, 24 Prices, 24 Prime rate, 22, 60-5 Student Loan Marketing Association, 28 Production, 42, 43 THRIFT institutions, 4 (See also Credit unions and Savings REAL estate loans institutions) Banks, 15-21, 33 Time and savings deposits, 4, 13, 15-21, 58-59 Terms, yields, and activity, 32 Treasury cash, Treasury currency, 5 Type and holder and property mortgaged, 33 Treasury deposits, 5, 10 Reserve requirements, 8 Reserves U.S. GOVERNMENT balances Commercial banks, 15-21 Commercial bank holdings, 15-21 Depository institutions, 4-6 Treasury deposits at Reserve Banks, 5, 10 Federal Reserve Banks, 10 U.S. government securities U.S. reserve assets, 45 Bank holdings, 15-21, 25 Residential mortgage loans, 32, 33 Dealer transactions, positions, and financing, 27 Retail credit and retail sales, 34 Federal Reserve Bank holdings, 5, 10, 11, 25 Foreign and international holdings and transactions, 10, 25, 55 SAVING Open market transactions, 9 Flow of funds, 33, 34, 35-9 Outstanding, by type and holder, 25, 26 Savings deposits (See Time and savings deposits) Rates, 23 Savings institutions, 33, 34, 35-9 U.S. international transactions, 44-55 Securities (See also specific types) Utilities, production, 43 Federal and federally sponsored credit agencies, 28 Foreign transactions, 54 VETERANS Affairs, Department of, 32, 33 New issues, 29 Prices, 24 WEEKLY reporting banks, 17, 18 Special drawing rights, 5, 10, 44, 45 State and local governments YIELDS (See Interest rates) Holdings of U.S. government securities, 25 New security issues, 29 Rates on securities, 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • February 2003 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD M. GRAMLICH ROGER W. FERGUSON, JR., Vice Chairman SUSAN SCHMIDT BIES OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE DONALD J. WINN, Assistant to the Board and Director KAREN H. JOHNSON, Director LYNN S. FOX, Assistant to the Board DAVID H. HOWARD, Deputy Director MICHELLE A. SMITH, Assistant to the Board THOMAS A. CONNORS, Associate Director WINTHROP P. HAMBLEY, Deputy Congressional Liaison DALE W. HENDERSON, Associate Director JOHN LOPEZ, Special Assistant to the Board RICHARD T. FREEMAN, Deputy Associate Director ROSANNA PIANALTO-CAMERON, Special Assistant to the Board WILLIAM L. HELKIE, Senior Adviser DAVID W. SKIDMORE, Special Assistant to the Board STEVEN B. KAMIN, Deputy Associate Director JON W. FAUST, Assistant Director LEGAL DIVISION JOSEPH E. GAGNON, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel MICHAEL P. LEAHY, Assistant Director SCOTT G. ALVAREZ, Associate General Counsel D. NATHAN SHEETS, Assistant Director RICHARD M. ASHTON, Associate General Counsel RALPH W. TRYON, Assistant Director KATHLEEN M. O'DAY, Associate General Counsel STEPHANIE MARTIN, Assistant General Counsel DIVISION OF RESEARCH AND STATISTICS ANN E. MISBACK, Assistant General Counsel DAVID J. STOCKTON, Director STEPHEN L. SICILIANO, Assistant General Counsel EDWARD C. ETTIN, Deputy Director KATHERINE H. WHEATLEY, Assistant General Counsel DAVID W. WILCOX, Deputy Director CARY K. WILLIAMS, Assistant General Counsel MYRON L. KWAST, Associate Director STEPHEN D. OLINER, Associate Director OFFICE OF THE SECRETARY PATRICK M. PARKINSON, Associate Director JENNIFER J. JOHNSON, Secretary LAWRENCE SLIFMAN, Associate Director ROBERT DEV. FRIERSON, Deputy Secretary CHARLES S. STRUCKMEYER, Associate Director MARGARET M. SHANKS, Assistant Secretary JOYCE K. ZICKLER, Deputy Associate Director J. NELLIE LIANG, Assistant Director DIVISION OF BANKING SUPERVISION S. WAYNE PASSMORE, Assistant Director AND REGULATION DAVID L. REIFSCHNEIDER, Assistant Director RICHARD SPILLENKOTHEN, Director JANICE SHACK-MARQUEZ, Assistant Director STEPHEN C. SCHEMERING, Deputy Director WILLIAM L. WASCHER III, Assistant Director HERBERT A. BIERN, Senior Associate Director MARY M. WEST, Assistant Director ROGER T. COLE, Senior Associate Director ALICE PATRICIA WHITE, Assistant Director WILLIAM A. RYBACK, Senior Associate Director GLENN B. CANNER, Senior Adviser GERALD A. EDWARDS, JR., Associate Director DAVID S. JONES, Senior Adviser STEPHEN M. HOFFMAN, JR., Associate Director THOMAS D. SIMPSON, Senior Adviser JAMES V. HOUPT, Associate Director JACK P. JENNINGS, Associate Director DIVISION OF MONETARY AFFAIRS MICHAEL G. MARTINSON, Associate Director VINCENT R. REINHART, Director MOLLY S. WASSOM, Associate Director HOWARD A. AMER, Deputy Associate Director DAVID E. LINDSEY, Deputy Director NORAH M. BARGER, Deputy Associate Director BRIAN F. MADIGAN, Deputy Director BETSY CROSS, Deputy Associate Director WILLIAM C. WHITESELL, Deputy Associate Director DEBORAH P. BAILEY, Assistant Director JAMES A. CLOUSE, Assistant Director BARBARA J. BOUCHARD, Assistant Director WILLIAM B. ENGLISH, Assistant Director ANGELA DESMOND, Assistant Director RICHARD D. PORTER, Senior Adviser JAMES A. EMBERSIT, Assistant Director NORMAND R. V. BERNARD, Special Assistant to the Board CHARLES H. HOLM, Assistant Director WILLIAM G. SPANIEL, Assistant Director DAVID M. WRIGHT, Assistant Director WILLIAM C. SCHNEIDER, JR., Project Director, National Information Center Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 MARK W. OLSON DONALD L. KOHN BEN S. BERNANKE DIVISION OF CONSUMER DIVISION OF RESERVE BANK OPERATIONS AND COMMUNITY AFFAIRS AND PAYMENT SYSTEMS DOLORES S. SMITH, Director LOUISE L. ROSEMAN, Director GLENN E. LONEY, Deputy Director PAUL W. BETTGE, Associate Director SANDRA F. BRAUNSTEIN, Senior Associate Director JEFFREY C. MARQUARDT, Associate Director MAUREEN P. ENGLISH, Associate Director KENNETH D. BUCKLEY, Assistant Director ADRIENNE D. HURT, Associate Director JOSEPH H. HAYES, JR., Assistant Director IRENE SHAWN MCNULTY, Associate Director EDGAR A. MARTINDALE III, Assistant Director JAMES A. MICHAELS, Assistant Director MARSHA W. REIDHILL, Assistant Director TONDA E. PRICE, Assistant Director JEFF J. STEHM, Assistant Director JACK K. WALTON II, Assistant Director OFFICE OF STAFF DIRECTOR FOR MANAGEMENT OFFICE OF THE INSPECTOR GENERAL STEPHEN R. MALPHRUS, Staff Director BARRY R. SNYDER, Inspector General SHEILA CLARK, EEO Programs Director DONALD L. ROBINSON, Deputy Inspector General MANAGEMENT DIVISION WILLIAM R. JONES, Director STEPHEN J. CLARK, Associate Director DARRELL R. PAULEY, Associate Director DAVID L. WILLIAMS, Associate Director CHRISTINE M. FIELDS, Assistant Director BILLY J. SAULS, Assistant Director DONALD A. SPICER, Assistant Director DIVISION OF INFORMATION TECHNOLOGY MARIANNE M. EMERSON, Deputy Director MAUREEN T. HANNAN, Associate Director TILLENA G. CLARK, Assistant Director GEARY L. CUNNINGHAM, Assistant Director WAYNE A. EDMONDSON, Assistant Director Po KYUNG KIM, Assistant Director SUSAN F. MARYCZ, Assistant Director SHARON L. MOWRY, Assistant Director RAYMOND ROMERO, Assistant Director ROBERT F. TAYLOR, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • February 2003 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman SUSAN SCHMIDT BIES EDWARD M. GRAMLICH MICHAEL H. MOSKOW BEN S. BERNANKE JACK GUYNN MARK W. OLSON J. ALFRED BROADDUS, JR. DONALD L. KOHN ROBERT T. PARRY ROGER W. FERGUSON, JR. ALTERNATE MEMBERS THOMAS M. HEONIG SANDRA PIANALTO JAMIE B. STEWART, JR. CATHY E. MINEHAN WILLIAM POOLE STAFF VINCENT R. REINHART, Secretary and Economist CHRISTINE M. CUMMING, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary ROBERT A. EISENBEIS, Associate Economist GARY P. GILLUM, Assistant Secretary MARVIN S. GOODFRIEND, Associate Economist MICHELLE A. SMITH, Assistant Secretary DAVID H. HOWARD, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel WILLIAM C. HUNTER, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel JOHN P. JUDD, Associate Economist KAREN H. JOHNSON, Economist DAVID E. LINDSEY, Associate Economist DAVID J. STOCKTON, Economist CHARLES S. STRUCKMEYER, Associate Economist THOMAS A. CONNORS, Associate Economist DAVID W. WILCOX, Associate Economist DINO Kos, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL DAVID A. SPINA, First District ALAN G. MCNALLY, Seventh District DAVID A. COULTER, Second District DAVID W. KEMPER, Eighth District RUFUS A. FULTON, JR., Third District JERRY A. GRUNDHOFER, Ninth District MARTIN G. MCGUINN, Fourth District CAMDEN R. FINE, Tenth District FREDERICK L. GREEN III, Fifth District GAYLE M. EARLS, Eleventh District L. PHILLIP HUMANN, Sixth District MICHAEL E. O'NEILL, Twelfth District JAMES ANNABLE, Co-Secretary WILLIAM J. KORSVIK, Co-Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 CONSUMER ADVISORY COUNCIL RONALD A. REITER, San Francisco, California, Chairman AGNES BUNDY SCANLAN, Boston, Massachusetts, Vice Chairman ANTHONY S. ABB ATE, Saddlebrook, New Jersey J. PATRICK LIDDY, Cincinnati, Ohio JANIE BARRERA, San Antonio, Texas RUHI MAKER, Rochester, New York KENNETH P. BORDELON, Baton Rouge, Louisiana OSCAR MARQUIS, Park Ridge, Illinois SUSAN BREDEHOFT, Cherry Hill, New Jersey ELSIE MEEKS, Kyle, South Dakota MANUEL CASANOVA, JR., Brownsville, Texas PATRICIA MCCOY, Cambridge, Massachusetts CONSTANCE K. CHAMBERLIN, Richmond, Virginia MARK PINSKY, Philadelphia, Pennsylvania ROBIN COFFEY, Chicago, Illinois ELIZABETH RENUART, Boston, Massachusetts DAN DIXON, Washington, District of Columbia DEBRA S. REYES, Tampa, Florida THOMAS FITZGIBBON, Chicago, Illinois BENSON ROBERTS, Washington, District of Columbia JAMES GARNER, Baltimore, Maryland BENJAMIN ROBINSON III, Charlotte, North Carolina CHARLES GATSON, Kansas City, Missouri DIANE THOMPSON, East St. Louis, Illinois LARRY HAWKINS, Houston, Texas HUBERT VAN TOL, Sparta, Wisconsin W. JAMES KING, Cincinnati, Ohio CLINT WALKER, Wilmington, Delaware EARL JAROLIMEK, Fargo, North Dakota THRIFT INSTITUTIONS ADVISORY COUNCIL KAREN L. MCCORMICK, Port Angeles, Washington, President WILLIAM J. SMALL, Defiance, Ohio, Vice President MICHAEL J. BROWN, SR., Ft. Pierce, Florida D. TAD LOWREY, Brea, California JOHN B. DICUS, Topeka, Kansas GEORGE W. NISE, Philadelphia, Pennsylvania RICHARD J. DRISCOLL, Arlington, Texas KEVIN E. PIETRINI, Virginia, Minnesota CURTIS L. HAGE, Sioux Falls, South Dakota ROBERT F. STOICO, Swansea, Massachusetts OLAN O. JONES, JR., Kingsport, Tennessee DAVID L. VIGREN, Rochester, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Bulletin • February 2003 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS, MS-127, Board Rates for subscribers outside the United States are as follows of Governors of the Federal Reserve System, Washington, DC and include additional air mail costs: 20551, or telephone (202) 452-3244, or FAX (202) 728-5886. You Federal Reserve Regulatory Service, $250.00 per year. may also use the publications order form available on the Board's Each Handbook, $90.00 per year. World Wide Web site (http://www.federalreserve.gov). When a FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL charge is indicated, payment should accompany request and be COMPUTERS. CD-ROM; updated monthly. made payable to the Board of Governors of the Federal Reserve Standalone PC. $300 per year. System or may be ordered via Mastercard, Visa, or American Network, maximum 1 concurrent user. $300 per year. Express. Payment from foreign residents should be drawn on a Network, maximum 10 concurrent users. $750 per year. U. S. bank. Network, maximum 50 concurrent users. $2,000 per year. Network, maximum 100 concurrent users. $3,000 per year. Subscribers outside the United States should add $50 to cover BOOKS AND MISCELLANEOUS PUBLICATIONS additional airmail costs. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. THE FEDERAL RESERVE ACT AND OTHER STATUTORY PROVISIONS 1994. 157 pp. AFFECTING THE FEDERAL RESERVE SYSTEM, as amended ANNUAL REPORT, 2001. through October 1998. 723 pp. $20.00 each. ANNUAL REPORT: BUDGET REVIEW, 2001. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 COUNTRY MODEL, May 1984. 590 pp. $14.50 each. each in the United States, its possessions, Canada, and INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. Mexico. Elsewhere, $35.00 per year or $3.00 each. 440 pp. $9.00 each. ANNUAL STATISTICAL DIGEST: period covered, release date, num- FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. ber of pages, and price. December 1986. 264 pp. $10.00 each. 1981 October 1982 239 pp. $ 6.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1982 December 1983 266 pp. $ 7.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1983 October 1984 264 pp. $11.50 RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A 1984 October 1985 254 pp. $12.50 JOINT CENTRAL BANK RESEARCH CONFERENCE. 1996. 1985 October 1986 231 pp. $15.00 578 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 1992 December 1993 215 pp. $25.00 1993 December 1994 281 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages 1994 December 1995 190 pp. $25.00 Consumer Handbook to Credit Protection Laws 1990-95 November 1996 404 pp. $25.00 A Guide to Business Credit for Women, Minorities, and Small 1996-2000 March 2002 352 pp. $25.00 Businesses Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF The Federal Open Market Committee CHARTS. Weekly. $30.00 per year or $.70 each in the United States, its possessions, Canada, and Mexico. Elsewhere, Federal Reserve Bank Board of Directors $35.00 per year or $.80 each. Federal Reserve Banks A Consumer's Guide to Mortgage Lock-Ins REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Settlement Costs RESERVE SYSTEM. A Consumer's Guide to Mortgage Refinancings ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Home Mortgages: Understanding the Process and Your Right Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. to Fair Lending Vol. II (Irregular Transactions). 1969. 116 pp. Each volume How to File a Consumer Complaint about a Bank (also available $5.00. in Spanish) GUIDE TO THE FLOW OF FUNDS ACCOUNTS. January 2000. In Plain English: Making Sense of the Federal Reserve 1,186 pp. $20.00 each. Making Sense of Savings FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated Welcome to the Federal Reserve monthly. (Requests must be prepaid.) When Your Home is on the Line: What You Should Know Consumer and Community Affairs Handbook. $75.00 per year. About Home Equity Lines of Credit Monetary Policy and Reserve Requirements Handbook. $75.00 Keys to Vehicle Leasing (also available in Spanish) per year. Looking for the Best Mortgage (also available in Spanish) Securities Credit Transactions Handbook. $75.00 per year. Privacy Choices for Your Personal Financial Information The Payment System Handbook. $75.00 per year. When Is Your Check Not a Check? Federal Reserve Regulatory Service. Four vols. (Contains all four Handbooks plus substantial additional material.) $200.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 STAFF STUDIES: Only Summaries Printed in the 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING BULLETIN Studies and papers on economic and financial subjects that are of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of print, but photocopies of them are available. Staff 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- Studies 165-174 are available on line at www.federalreserve.gov/ LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. pubs/staffstudies. Requests to obtain single copies of any paper or Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to Publications. 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- DENCE, by Gregory Elliehausen. April 1998. 35 pp. 172. USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR- 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- KET DISCIPLINE, by Study Group on Subordinated Notes ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and and Debentures, Federal Reserve System. December 1999. Donald Savage. February 1990. 12 pp. 69 pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- 173. IMPROVING PUBLIC DISCLOSURE IN BANKING, by Study VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Group on Disclosure, Federal Reserve System. March 2000. Gregory E. Elliehausen and John D. Wolken. September 35 pp. 1990. 35 pp. 174. BANK MERGERS AND BANKING STRUCTURE IN THE UNITED 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp. GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. 175. THE FUTURE OF RETAIL ELECTRONIC PAYMENTS SYSTEMS: Rhoades. February 1992. 11 pp. INDUSTRY INTERVIEWS AND ANALYSIS, Federal Reserve 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by Staff, for the Payments System Development Committee, James T. Fergus and John L. Goodman, Jr. July 1993. Federal Reserve System. December 2002. 27 pp. 20 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Bulletin • February 2003 Maps of the Federal Reserve System LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts by num- of Puerto Rico and the U.S. Virgin Islands; the San Franber and Reserve Bank city (shown on both pages) and by cisco Bank serves American Samoa, Guam, and the Comletter (shown on the facing page). monwealth of the Northern Mariana Islands. The Board of In the 12th District, the Seattle Branch serves Alaska, Governors revised the branch boundaries of the System and the San Francisco Bank serves Hawaii. most recently in February 1996. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 1-A 2-B 3-C 4-D 5-E Ba\lt imdore TM D ' NY • • HI • H P* s VA« VT wv NH cinnati Bullalo •Ouirlpne CT RI NJ NY sc BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G l-R Birmingham- - J, lsville —-A__ — 1 I A lacksonville New Cleans yFL ATLANTA CHICAGO ST. LOUIS MT •Helen?' MINNEAPOLIS 10-J 12-L t CO Omah MO Den N.M Okllaahnoommaa Cin KANSAS CITY 11-K DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Bulletin • February 2003 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 James J. Norton Cathy E. Minehan Samuel O. Thier Paul M. Connolly NEW YORK* 10045 Peter G. Peterson William J. McDonough John E. Sexton Jamie B. Stewart, Jr. Buffalo 14240 Marguerite D. Hambleton Barbara L. Walter1 PHILADELPHIA 19105 Glenn A. Schaeffer Anthony M. Santomero Ronald J. Naples William H. Stone, Jr. CLEVELAND* 44101 Robert W. Mahoney Jerry L. Jordan Charles E. Bunch Sandra Pianalto Cincinnati 45201 Dennis C. Cuneo Barbara B. Henshaw Pittsburgh 15230 Roy W. Haley Robert B. Schaub RICHMOND* 23219 Wesley S. Williams, Jr. J. Alfred Broaddus, Jr. Irwin Zazulia Walter A. Varvel Baltimore 21203 Owen E. Herrnstadt William J. Tignanelli1 Charlotte 28230 Michael A. Almond Dan M. Bechter1 ATLANTA 30303 Paula Lovell Jack Guynn David M. Ratcliffe Patrick K. Barron James M. McKee1 Birmingham 35242 W. Miller Welborn Lee C. Jones Jacksonville 32231 William E. Flaherty Christopher L. Oakley Miami 33152 Brian E. Keeley James T. Curry III Nashville 37203 Whitney Johns Martin Melvyn K. Purcell1 New Orleans 70161 Dave Dennis Robert J. Musso1 CHICAGO* 60690 Robert J. Darnall Michael H. Moskow W. James Farrell Gordon R. G. Werkema Detroit 48231 Timothy D. Leuliette Glenn Hansen1 ST. LOUIS 63166 Charles W. Mueller William Poole Walter L. Metcalfe, Jr. W. LeGrande Rives Little Rock 72203 To be announced Robert A. Hopkins Louisville 40232 Norman Pfau, Jr. Thomas A. Boone Memphis 38101 Gregory M. Duckett Martha Perine Beard MINNEAPOLIS 55480 Ronald N. Zwieg Gary H. Stern Linda Hall Whitman James M. Lyon Helena 59601 Thomas O. Markle Samuel H. Gane KANSAS CITY 64198 Terrence P. Dunn Thomas M. Hoenig Richard H. Bard Richard K. Rasdall Denver 80217 Robert M. Murphy Maryann Hunter1 Oklahoma City 73125 Patricia B. Fennell Dwayne E. Boggs Omaha 68102 A.F. Raimondo Steven D. Evans DALLAS 75201 Ray L. Hunt Robert D. McTeer, Jr. Patricia M. Patterson Helen E. Holcomb El Paso 79999 To be announced Houston 77252 To be announced Robert Smith III1 San Antonio 78295 To be announced James L. Stull1 SAN FRANCISCO 94120 Nelson C. Rising Robert T. Parry George M. Scalise John F. Moore Los Angeles 90051 William D. Jones Mark L. Mullinix2 Portland 97208 Karla S. Chambers Richard B. Hornsby Salt Lake City 84125 H.Roger Boyer Andrea P. Wolcott Seattle 98124 Mic R. Dinsmore D.Kerry Webb1 *Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee, Wisconsin 53202; and Peoria, Illinois 61607. 1. Senior Vice President. 2. Executive Vice President Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory func- The Payment System Handbook deals with expedited tions, the Board publishes the Federal Reserve Regu- funds availability, check collection, wire transfers, and latory Service, a four-volume loose-leaf service con- risk-reduction policy. It includes Regulations CC, J, and taining all Board regulations as well as related statutes, EE, related statutes and commentaries, and policy interpretations, policy statements, rulings, and staff statements on risk reduction in the payment system. opinions. For those with a more specialized interest in For domestic subscribers, the annual rate is $200 for the Board's regulations, parts of this service are pub- the Federal Reserve Regulatory Service and $75 for lished separately as handbooks pertaining to monetary each handbook. For subscribers outside the United policy, securities credit, consumer affairs, and the pay- States, the price including additional air mail costs is ment system. $250 for the service and $90 for each handbook. These publications are designed to help those who The Federal Reserve Regulatory Service is also availmust frequently refer to the Board's regulatory materi- able on CD-ROM for use on personal computers. For a als. They are updated monthly, and each contains cita- standalone PC, the annual subscription fee is $300. For tion indexes and a subject index. network subscriptions, the annual fee is $300 for 1 con- The Monetary Policy and Reserve Requirements current user, $750 for a maximum of 10 concurrent Handbook contains Regulations A, D, and Q, plus users, $2,000 for a maximum of 50 concurrent users, related materials. and $3,000 for a maximum of 100 concurrent users. The Securities Credit Transactions Handbook con- Subscribers outside the United States should add $50 tains Regulations T, U, and X, dealing with exten- to cover additional airmail costs. For further informasions of credit for the purchase of securities, together tion, call (202) 452-3244. with related statutes, Board interpretations, rulings, All subscription requests must be accompanied by a and staff opinions. Also included is the Board's list of check or money order payable to the Board of Goverforeign margin stocks. nors of the Federal Reserve System. Orders should be The Consumer and Community Affairs Handbook addressed to Publications, mail stop 127, Board of Govcontains Regulations B, C, E, G, M, P, Z, A A, BB, and ernors of the Federal Reserve System, Washington, DC DD, and associated materials. 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A new edition of Guide to the Flow of Funds Accounts and describes how the series is derived from source is now available from the Board of Governors. The new data. The Guide also explains the relationship between edition incorporates changes to the accounts since the the flow of funds accounts and the national income and initial edition was published in 1993. Like the earlier product accounts and discusses the analytical uses of publication, it explains the principles underlying the flow of funds data. The publication can be purchased, flow of funds accounts and describes how the accounts for $20.00, from Publications, Mail Stop 127, Board are constructed. It lists each flow series in the Board's of Governors of the Federal Reserve System, Washingflow of funds publication, "Flow of Funds Accounts of ton, DC 20551. the United States" (the Z.l quarterly statistical release), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Bulletin • February 2003 Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve Sys- For further information regarding a subscription to tem makes some of its statistical releases available to the economic bulletin board, please call (202) 482the public through the U.S. Department of Com- 1986. The releases transmitted to the economic bullemerce's economic bulletin board. Computer access tin board, on a regular basis, are the following: to the releases can be obtained by subscription. Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z.l Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis